/raid1/www/Hosts/bankrupt/TCR

/raid1/www/Hosts/bankrupt/TCR_Public/170922.mbx T R O U B L E D C O M P A N Y R E P O R T E R Friday, September 22, 2017, Vol. 21, No. 264 Headlines 2020 MCGOWEN: U.S. Trustee Unable to Appoint Committee 21ST CENTURY ONCOLOGY: Convenience Claim Pool Hiked to $2.6MM 21ST CENTURY ONCOLOGY: Maturity Dates for Certain LOCs Extended 4 ACES REALTY: Voluntary Chapter 11 Case Summary ABACO ENERGY: S&P Ups Corp Credit Rating to CCC+ on Revenue Growth AJUBEO LLC: Seeks Court Approval to Use Cash Collateral ALASKA HARVEST: Disclosure Statement Hearing Set for Nov. 1 ALGODON WINES: Adjourns Annual Stockholder Meeting to Sept. 28 ALLIANCE HEALTHCARE: S&P Affirms B+ CCR & Alters Outlook to Stable ALTON BEAN: Case Summary & 8 Unsecured Creditors AMN HEALTHCARE: S&P Alters Outlook to Positive & Affirms 'BB-' CCR ARC-RITE INC: Chapter 727 Claims Bar Date Set for Jan. 5 ARCONIC INC: Egan-Jones Hikes Sr. Unsec. Debt Ratings to BB+ ART & DENTISTRY: Case Summary & 20 Largest Unsecured Creditors ASPEN COURT: Exclusive Plan Filing Period Extended to Dec. 15 ATHANAS FENCE: Unsecureds to Recover 35% Under Amended Plan BAVARIA YACHTS: Wants Plan Filing Period Extended to Jan. 30 BBQ BOSS: Unsecureds to be Paid $140.85 Per Month Over 10 Years BCW EXPRESS: Allowed to Use Up To $100K Cash Collateral BELLEVILLE DEVELOPMENT: Seeking New Buyer, More Time to File Plan BLACKSMITH SQUARE: Case Summary & 9 Unsecured Creditors BRINKER INT'L: Egan-Jones Cuts LC Sr. Unsecured Rating to BB CAPITOL SUPPLY: Case Summary & 10 Unsecured Creditors CARL WEBER GREEN: Voluntary Chapter 11 Case Summary CAROL LLOYD: Allowed to Use Cash Collateral for Next 30 Days CARTEL MANAGEMENT: May Exclusively File Plan Until Dec. 29 CATALENT INC: S&P Affirms 'BB-' CCR on Planned Cook Acquisition CATALENT PHARMA: Moody's Affirms 'B1' CFR Amid Cook Pharmica Deal CATHEDRAL HILL: Taps Larkin Hoffman as Legal Counsel CBL & ASSOCIATES: Fitch Affirms 'BB' Preferred Stock Rating CHARTER COMMUNICATIONS: Egan-Jones Gives BB+ Unsec. Debt Rating CHRISTOPHER BROGDON: Files for Chapter 11 After Muni Bonds Mess CIBER INC: Amends Liquidation Plan, Hearing Set for Nov. 15 COOK INLET: Former Chair Awarded $15K in Administrative Expense CORE COMMUNICATIONS: Plan Filing Period Extended Until Nov. 28 COTT CORP: Egan-Jones Hikes Sr. Unsecured Debt Ratings to B+ COUER MINING: Egan-Jones Hikes Sr. Unsec. Debt Ratings to BB- CROSSROADS SYSTEMS: Court Approves Disclosures & Confirms Plan CRR INC: Court Denies Approval of Plan Outline CUSTOM FABRICATION & TANKS: Chapter 727 Bar Date Set for Jan. 5 CVR REFINING: Egan-Jones Downgrades Sr. Unsecured Ratings to BB+ DEKALB MEDICAL CENTER: Fitch Cuts 2010 Revenue Certs Rating to BB DELL TECHNOLOGIES: Fitch Corrects September 19 Release DOLPHIN ENTERTAINMENT: Effects Reverse Common Stock Split DR. LUIS A. VINAS: Files Renewed 5th Cash Collateral Motion EAST WEST COPOLYMER: Hearing on Plan Outline Approval on Oct. 11 EMBASSY ENTERTAINMENT: Chapter 727 Claims Bar Date Set for Dec. 20 EVIO INC: Proposes to Reduce Authorized Shares to 110 Million FARWEST PUMP: Case Summary & 20 Largest Unsecured Creditors FIRST NBC: Gets Exclusivity in Plan Filing Thru Oct. 10 FRESH ICE CREAM: Unsecureds to Get 4.15% Under Liquidation Plan GARCIA INVESTMENT: Foreclosure Sale of Anchorage Property on Nov. 7 GARDEN OF EDEN: Exclusive Plan Filing Deadline Extended to Oct. 24 GASTAR EXPLORATION: Amends Term Loan to Permit Assets Sales GENERAL WIRELESS: Exclusive Plan Filing Deadline Moved to Dec. 4 GENON ENERGY: U.S. Trustee Opposes Noteholder Advisors Fee Motion GILLESPIE OFFICE: Plan Solicitation Period Moved to Dec. 11 GLOBAL APPLIANCE: Moody's Assigns B1 CFR; Outlook Stable GOGO INTERMEDIATE: Moody's Rates Proposed $100MM Notes Add-on B2 GOOD FIGHT: Plan Confirmation Hearing on Oct. 18 GREER APPLIANCE: U.S. Trustee Unable to Appoint Committee HAMPSHIRE GROUP: Wants Plan Filing Deadline Moved to Oct. 20 HARBOR BAR DOCKS: Taps Larimore Law Office as Legal Counsel HCA INC: Egan-Jones Assigns BB- Sr. Unsec. Debt Ratings HHH CHOICES: Hearing on HHHW Plan Set for Oct. 31 HIGHLAND ACQUISITION: Moody's Puts B2 CFR on Review for Upgrade HIGHLAND ACQUISITION: S&P Puts 'BB-' CCR on Watch Positive HUDSON'S BAY: Egan-Jones Cuts Sr. Unsecured Ratings to B- IGNITE RESTAURANT: Court Approves Disclosure Statement IMAGEWARE SYSTEMS: Secures $11 Million in New Funding J CREW GROUP: Signs Three-Year Contract With CAO JJS IN THE DESERT: Creditors Consent to Cash Collateral Use LA CONTESSA: Case Summary & 20 Largest Unsecured Creditors LEVERETTE TILE: Seeks Authority to Continue Using Cash Collateral LMC MEDICAL: Claims in Chapter 727 Case Due Dec. 20 LOVE GRACE: Has Final Authorization to Use Cash Collateral MAXIMUS III: Hires Michael A. Partlow as Chapter 11 Counsel MCCLATCHY CO: Class A Common Stock Delisted from NYSE MD2U MANAGEMENT: Has Interim Approval to Use Cash Collateral MED-CARE DIABETIC: Claims in Chapter 727 Case Due Dec. 15 MED-CARE INC: Claims in Chapter 727 Case Due Dec. 20 MED-CARE MEDICAL: Claims in Chapter 727 Case Due Dec. 20 MESOBLAST LIMITED: Completes A$50.7 Million Entitlement Offer MICRON TECHNOLOGY: Egan-Jones Raises Sr. Unsec. Debt Ratings to BB+ MRI INTERVENTIONS: Satterfield Holds 5.7% Stake as of Sept. 18 NATIONAL TRUCK: U.S. Trustee Forms 3-Member Committee NAVISTAR INTERNATIONAL: Extends Maturity of Revolving Loans to 2021 NEONODE INC: Appoints Two New Members to Board of Directors NOAH WEBSTER: S&P Alters 2014/2015 Revenue Bonds Outlook to Stable OAKS OF PRAIRIE: Can Use Cash for September 2017 Expenses OCEAN RIG: Announces Reversed Stock Split OCEAN RIG: Cayman Court Sanctions Schemes of Arrangements OCEAN RIG: Extraordinary General Meeting of Shareholders Nov. 3 OCEAN RIG: U.S. Court Gives Full Force to Cayman Schemes ODYSSEY LOGISTICS: S&P Assigns 'B' CCR & Rates 1st Lien Debt 'B+' OM SHANTI: Wants to Use Cash Collateral for 6 Months ONSITE TEMP: Hearing on JRS' Disclosure Statement Set for Oct. 24 OPTIMA SPECIALTY: Seeks OK of Exit Financing with DDJ Capital ORANGE ACRES: Has Until October 30 to File Chapter 11 Plan PACKERS HOLDINGS: S&P Ups CCR to BB- on Improving Credit Measures PENICK PRODUCE: Plan Filing Deadline Extended to November 22 PHILADELPHIA SD: Fitch Affirms 'BB-' IDR, Outlook Stable PHOTOMEDEX INC: Adjourns Annual Meeting to October 12 PHOTOMEDEX INC: Reaches Settlement in 'Mouzon' Civil Case PLATFORM SPECIALTY: Moody's Affirms B2 Corporate Family Rating PLY GEM: S&P Affirms 'B+' CCR & Hikes Rating on $650MM Notes to B+ PRECIPIO INC: Mark Rimer Holds 20% Equity Stake as of Sept. 18 PRECISION CASTPARTS: Egan-Jones Assigns 'B' Unsec. Debt Ratings PRESCRIPTIONS PLUS: Claims in Chapter 727 Case Due Dec. 20 PRIME GLOBAL: Incurs US$41,400 Net Loss in Third Quarter PRODUCTION PATTERN: Case Summary & 20 Largest Unsecured Creditors PUERTO RICO: Objects to COFINA Agent Bid for Sec. 2125 Protection Q & D INC: Hires Timothy Zearfoss as Bankruptcy Counsel QEP RESOURCES: Egan-Jones Hikes Sr. Unsec. Debt Ratings to B+ RENTECH INC: Egan-Jones Cuts Sr. Unsecured Ratings to CC ROCK ELITE: Wants Exclusive Plan Filing Deadline Moved to Jan. 8 ROOT9B HOLDINGS: Creditors Demand Repayment of $1.37M Notes SIXTY SIXTY CONDO: Needs Short Extension to Close Deal, File Plan STOLLINGS TRUCKING: Committee Says Info in Plan Outline Inadequate STOLLINGS TRUCKING: Lyndon Property Tries to Block Plan Outline OK STONE FOX: Chapter 11 Petition Filed in Bad Faith, Court Rules SUNEDISON INC: Proposes Bid Procedures for Sherman Real Property SUSITNA STATION AIRFIELD: U.S. Survey 4274 to be Auctioned Dec. 1 T3M INC: Court Grants Conditional Conversion to Chapter 7 TENET HEALTHCARE: Fitch Affirms 'B' Long-Term IDR; Outlook Stable THORPE INSULATION: 9th Cir. Vacates Settlement Enforcement Ruling TMR LLC: New Frontier Bank Forbids Cash Collateral Use TOYS "R" US: $375M Int'l DIP Facility Has Interim Approval TOYS "R" US: Bankruptcy No Rating Impact on US CLOs, Fitch Says TOYS "R" US: JAKKS to Report Loss Due to Toys R Us Woes TRIDENT BRANDS: Fengate Has 40.4% Equity Stake as of Sept. 8 TRINITY 83: Court Dismisses Clawback Suit Against ColFin TROVERCO INC: Proposes Up To $750K of Financing UNITED BANCSHARES: Auditor Refuses to Stand for Reelection VELLANO CORP: Contact Person of Committee Member Changed VIRGIN ISLANDS PORT: S&P Lowers $24MM Marine Bonds Rating to 'B+' VITAMIN WORLD: Taps JND Corporate as Administrative Agent VITAMIN WORLD: U.S. Trustee Forms 5-Member Committee WALTER INVESTMENT: Barclays Upsizes Credit Facilities by $300M WARWICK PROPERTIES: Case Summary & 6 Unsecured Creditors WASHINGTON PRIME: Fitch Affirms 'BB' Preferred Stock Rating WEBMD HEALTH: Egan-Jones Cuts Sr. Unsec. Debt Ratings to BB- WEST CORP: Fitch Assigns First-Time 'B+' IDR, Outlook Stable [*] Fitch: Retail Inst'l Default Rate Could Top 10% with Toys R Us [^] BOOK REVIEW: The Sorcerer's Apprentice - Medical Miracles ********* 2020 MCGOWEN: U.S. Trustee Unable to Appoint Committee ------------------------------------------------------ Judy A. Robbins, U.S. Trustee for the Southern District of Texas, on Sept. 19 disclosed in a court filing that no official committee of unsecured creditors has been appointed in the Chapter 11 case of 2020 McGowen, LLC. 2020 McGowen, LLC, filed for Chapter 11 bankruptcy protection (Bankr. S.D. Tex. Case No. 17-32788). 21ST CENTURY ONCOLOGY: Convenience Claim Pool Hiked to $2.6MM ------------------------------------------------------------- BankruptcyData.com reported that 21st Century Oncology Holdings filed with the U.S. Bankruptcy Court a joint notice of settlement with the Company's official committee of unsecured creditors. The settlement notes, "To resolve the issues and concerns raised by the official committee of unsecured creditors appointed in the Debtors' bankruptcy cases with respect to the Plan, the Disclosure Statement, the Solicitation Motion and the Backstop Approval Motion, the Debtors have reached a settlement agreement with the Creditors' Committee, which settlement is supported by the Requisite Backstop Parties. The Convenience Claim Distribution shall be increased to $2.6 million. The recovery percentage that a holder of an Allowed General Unsecured Claim that has made the Convenience Claim Election (with respect to an Allowed General Unsecured Claim greater than $1,000,000) or has not made the New Common Stock Election (with respect to an Allowed General Unsecured Claim less than or equal to $1,000,000) receives on account of such Allowed General Unsecured Claim from the Convenience Claim Distribution shall not be capped. Subject to the terms of this Term Sheet, any holder of an Eligible General Unsecured Claim as of the Rights Offering Record Date that (i) has not made the Convenience Claim Election (with respect to an Eligible General Unsecured Claim greater than $1,000,000) or has made the New Common Stock Election (with respect to an Eligible General Unsecured Claim less than or equal to $1,000,000) and (ii) is an Accredited Investor shall receive its pro rata share (based on the proportion that such holder's Eligible General Unsecured Claim as of the Rights Offering Record Date bears to the aggregate amount of (I) all Eligible General Unsecured Claims as of the Rights Offering Record Date held by each Person that has certified it is an Accredited Investor on or prior to the Questionnaire Deadline plus (II) all Allowed Note Claims as of the Rights Offering Record Date) of New Notes Rights and New Preferred Equity Rights." About 21st Century Oncology 21st Century Oncology Holdings, Inc., is a global provider of integrated cancer care services. As of March 31, 2017, the company operated 179 treatment centers, including 143 centers located in 17 U.S. states and 36 centers located in seven countries in Latin America. 21st Century and 59 U.S. affiliates filed Chapter 11 petitions under the Bankruptcy Code (Bankr. S.D.N.Y. Lead Case No. 17-22770) on May 25, 2017. At the time of the filing, the Debtors estimated their assets and debt at $1 billion to $10 billion. The cases are pending before the Hon. Judge Robert D. Drain. Lorenzo Marinuzzi, Esq., at Morrison & Foerster LLP, serves as the Debtors' bankruptcy counsel. Kurtzman Carson Consultants LLC is the Debtors' claims and noticing agent. On June 8, 2017, the Office of the U.S. Trustee appointed an official committee of unsecured creditors. The Committee retained Morrison & Foerster LLP as counsel and Berkeley Research Group, LLC, and financial advisor. 21ST CENTURY ONCOLOGY: Maturity Dates for Certain LOCs Extended --------------------------------------------------------------- BankruptcyData.com reported that the U.S. Bankruptcy Court approved 21st Century Oncology Holdings' motion to extend the maturity dates for certain outstanding letters of credit. As previously reported, "As of the Petition Date, there were six letters of credit outstanding under the First Lien Credit Facilities in the aggregate amount of approximately $3.84 million (the 'Prepetition L/Cs'). The Prepetition L/Cs are scheduled to expire at various times in late 2017 and early 2018. Two of the Prepetition L/Cs expire on September 30, 2017 and December 31, 2017, respectively (the 'Expiring L/Cs'). The Expiring L/Cs are in the aggregate amount of approximately $775,500…. Moreover, if the maturity dates for the Expiring L/Cs are not extended, the beneficiaries of the Expiring L/Cs may draw on the Expiring L/Cs which would increase the obligations under the First Lien Credit Facilities and the associated interest expense." According to the waiver, "Pursuant to Sections 3.2 and 5.2 of the Credit Agreement, the Borrower will request, concurrently with the request for waivers contemplated by (i) this Waiver and (ii) the DIP Waiver, that the Administrative Agent and the applicable Issuing Lenders agree to certain amendments to the outstanding Letters of Credit (the 'Specified Letters of Credit'), modifying or extending the maturity dates of such Specified Letters of Credit; upon the effectiveness of this Waiver and the granting of the LC Amendment Request, a Default and Event of Default will occur…by and among the Borrower Holdings, the subsidiary guarantors party as lenders and Morgan Stanley Senior Funding, as administrative agent (the 'DIP Credit Agreement'), the Borrower will request, concurrently with the request for waiver contemplated by this Waiver and the request for amendment contemplated by the LC Amendment Request, that Morgan Stanley Senior Funding, as administrative agent under the DIP Credit Agreement and certain lenders party there to grant a waiver to the provisions under Sections 7.2(e) and 8.1(c) of the DIP Credit Agreement to facilitate the granting of the LC Amendment Request and the issuance of the Specified Letters of Credit thereby (the 'DIP Waiver')." About 21st Century Oncology 21st Century Oncology Holdings, Inc., is a global provider of integrated cancer care services. As of March 31, 2017, the company operated 179 treatment centers, including 143 centers located in 17 U.S. states and 36 centers located in seven countries in Latin America. 21st Century and 59 U.S. affiliates filed Chapter 11 petitions under the Bankruptcy Code (Bankr. S.D.N.Y. Lead Case No. 17-22770) on May 25, 2017. At the time of the filing, the Debtors estimated their assets and debt at $1 billion to $10 billion. The cases are pending before the Hon. Judge Robert D. Drain. Lorenzo Marinuzzi, Esq., at Morrison & Foerster LLP, serves as the Debtors' bankruptcy counsel. Kurtzman Carson Consultants LLC is the Debtors' claims and noticing agent. On June 8, 2017, the Office of the U.S. Trustee appointed an official committee of unsecured creditors. The Committee retained Morrison & Foerster LLP as counsel and Berkeley Research Group, LLC, and financial advisor. 4 ACES REALTY: Voluntary Chapter 11 Case Summary ------------------------------------------------ Debtor: 4 Aces Realty, LLC 2625 Rt 130 Cranbury, NJ 08512 Business Description: 4 Aces Realty is a small business Debtor as defined in 11 U.S.C. Section 101(51D) categorized under Restaurants and Other Eating Places. The Company previously sought bankruptcy protection on Jan. 10, 2017, under the name BK Enterprises Corporation (Bankr. D. N.J. Case No. 17- 10550). The prior case was dismissed for failure to file information. Chapter 11 Petition Date: September 20, 2017 Case No.: 17-29100 Court: United States Bankruptcy Court District of New Jersey (Trenton) Judge: Hon. Kathryn C. Ferguson Debtor's Counsel: Harrison Ross Byck, Esq. KASURI BYCK, LLC 340 Route 1 North Edison, NJ 08817 Tel: 732-253-7630 Fax: 732-253-7632 E-mail: lawfirm@kasuribyck.com Estimated Assets: $1 million to $10 million Estimated Liabilities: $1 million to $10 million The petition was signed by Bill Kennedy, president. The Debtor did not file a list of its 20 largest unsecured creditors together with the petition. A full-text copy of the petition is available for free at: http://bankrupt.com/misc/njb17-29100.pdf ABACO ENERGY: S&P Ups Corp Credit Rating to CCC+ on Revenue Growth ------------------------------------------------------------------ S&P Global Ratings notes that Abaco Energy Technologies LLC has experienced significant revenue growth due to increased drilling activity in 2017. As a result, S&P expects the company to generate sufficient cash flow to meet fixed charges and for leverage to improve to sustainable levels in 2017 and into 2018. S&P thus raised its corporate credit rating on U.S.-based Abaco Energy Technologies LLC to 'CCC+' from 'CCC'. The outlook is stable. S&P said, "At the same time, we raised the issue-level rating on company's first-lien debt to 'CCC+' from 'CCC'. The recovery rating remains '3', which indicates our expectation for meaningful (50% to 70%; rounded estimate: 60%) recovery in the event of default. "The upgrade reflects our expectation for significantly stronger financial metrics driven by an improvement in the oilfield services market as a result of increases in capital spending by the onshore exploration and production (E&P) sector. The company's primary products, which include rotors, stators, and stator relines are closely tied to drilling activity in North America. With rig counts doubling in the past year, we expect Abaco to end 2017 with markedly improved financial performance. "We expect revenues to nearly double and margins to continue to improve. As a result, we expect leverage to improve to sustainable levels and allow Abaco to meet financial maintenance covenants. Additionally, we expect the company to generate sufficient cash flow to meet ongoing principal payments and interest requirements. However, we believe Abaco is still dependent on favorable business, financial, and economic conditions. "The stable outlook reflects our view that the company will generate sufficient cash flow and maintain sufficient liquidity to meet ongoing principal payments and interest requirements. Additionally, we expect the company to meet financial maintenance covenants that will decrease through 2017 and into 2018. "We could downgrade the company if we expect revenues to decline such that it violates covenant requirements or depletes cash and is unable to meet its ongoing financing debt obligations. This would likely occur if E&P companies decrease capital expenditures, likely as a result of low commodity prices. "We could raise ratings if we expect the company to improve financial performance such that it comfortably meets its financing and investment obligations and maintains adequate liquidity and stronger leverage. This could occur if the company can demonstrate a track record of maintaining sustainable leverage and meeting financial maintenance covenants while maintaining at least adequate liquidity." -- S&P's simulated default scenario for Abaco assumes a sustained period of weak crude oil and domestic natural gas prices and a corresponding sharp decline in capital spending by domestic E&P companies, resulting in industrywide overcapacity, increased competition, and low equipment utilization. -- S&P believes that in the event of a default, Abaco would likely reorganize, because there would be more value in the business as a going concern. To value the company, S&P applied a 5x multiple to estimated EBITDA at emergence of $21 million, which yields a gross enterprise value of approximately $109 million. -- Principal due on the term loan assumes the company will make scheduled principal payments through 2019. -- Simulated year of default: 2019 -- Net enterprise value (after 5% administrative costs): $103 million -- Secured first-lien debt claims (including the term loan): $139 million -- Recovery expectations: 50% to 70% (rounded estimate: 60%) AJUBEO LLC: Seeks Court Approval to Use Cash Collateral ------------------------------------------------------- Ajubeo, LLC, seeks authorization from the U.S. Bankruptcy Court for the District of Colorado to use cash collateral to fund its ordinary course operations, and to fund the payment of administrative expenses in accordance with the Budget. The Debtor believes that it is only through a going concern sale of substantially all of its assets that unsecured creditors will receive any recovery on their claims. Currently, the Debtor has reached agreement on a proposed asset purchase agreement with a stalking horse bidder, Green House Data, Inc., and the Debtor has filed a motion to establish bidding procedures for the sale of substantially all of its assets. However, the Debtor plans to continue operation of its business pending completion of the marketing and sale process. In order to maintain ongoing operations during this period, the Debtor needs to pay for operating expenses such as employee wages, utilities, insurance, rent, and other expense items accompanying the Budget The proposed Budget reflects total cash disbursements of approximately $1,003,722 covering the weeks ending Sept. 15 through Oct. 27, 2017. Silicon Valley Bank and Integrity Capital Income Fund, Inc., have security interests in the cash collateral. They consent to the use of cash collateral consistent with the Debtor's proposed Interim Order and Budget. Silicon Valley Bank holds a secured claim against the Debtor in the approximate amount of $630,000, secured by substantially all assets of the Debtor (excluding intellectual property) pursuant to that certain Loan and Security Agreement. Integrity Capital holds a secured claim against the Debtor of $915,000, secured by substantially all assets of the Debtor (excluding intellectual property) pursuant to that certain Loan and Security Agreement. Pursuant to a Subordination Agreement by and among Silicon Valley Bank, Integrity Capital, and the Debtor, Integrity Capital has subordinated any security interest or lien that it may have in any property of the Debtor to the security interest or lien of Silicon Valley Bank, notwithstanding the respective dates of attachment or perfection of their respective security interests or liens. The Debtor proposes to grant replacement liens to Integrity Capital and Silicon Valley Bank, which will attach to the Debtor's postpetition accounts and income in accordance with the secured creditors' relative prepetition priorities. The Debtor also proposes to grant super-priority claims to Integrity Capital and Silicon Valley Bank to the extent of the Post-Petition Shortfall. Silicon Valley Bank will receive postpetition interest payments, at the non-default rate, in the approximate amount of $3,000 per month. Subject to entry of the Final Order, Silicon Valley Bank will also receive a one-time principal payment in the amount of $51,683, as set forth in the Budget. A full-text copy of the Debtor's Motion, dated Sept. 5, 2017, is available at https://is.gd/ldmq9L A copy of the Debtor's Budget is available at https://is.gd/dR11TM About Ajubeo, LLC Ajubeo, LLC -- https://www.ajubeo.com/ -- is a privately held provider of internet infrastructure software and equipment. Founded in 2011 and headquartered in Greater Denver Area in Boulder, Colorado, Ajubeo serves clients all over the world with datacenter hubs in Denver, New Jersey, Frankfurt, and Dusseldorf Germany. Ajubeo, LLC, filed a Chapter 11 petition (Bankr. D. Col. Case No. 17-17924) on Aug. 25, 2017. The petition was signed by Jeff Kuo, chairman of the Board of Managers. At the time of filing, the Debtor estimated $1 million to $10 million both in assets and liabilities. Joshua M. Hantman, Esq., at Brownstein Hyatt Farber Schreck, LLP, serves as counsel to the Debtor. ALASKA HARVEST: Disclosure Statement Hearing Set for Nov. 1 ----------------------------------------------------------- The U.S. Bankruptcy Court for the District of Oregon is set to hold a hearing on November 1 to consider approval of the disclosure statement, which explains the Chapter 11 plan for Alaska Harvest Seafood LLC. The hearing will take place at 10:00 a.m., at Courtroom 5. Objections must be filed no less than seven days before the date of the hearing. About Alaska Harvest Seafood Alaska Harvest Seafood LLC sought protection under Chapter 11 of the Bankruptcy Code (Bankr. D. Ore. Case No. 17-30261) on January 30, 2017. The petition was signed by Paul Cutler, authorized representative. At the time of the filing, the Debtor estimated its assets and debts at $1 million to $10 million. On February 1, 2017, the court ordered the transfer of the case to the Eugene Office from the Portland Office. The case was assigned a new case number: 17-60288. Judge Thomas M. Renn presides over the case. Streinz Law Office represents the Debtor as bankruptcy counsel. ALGODON WINES: Adjourns Annual Stockholder Meeting to Sept. 28 -------------------------------------------------------------- Algodon Wines & Luxury Development Group, Inc., convened its 2017 annual stockholder meeting on Sept. 19, 2017, at the Company's offices: 135 Fifth Avenue, 10th Floor, New York, NY, 10010. The Annual Meeting was adjourned due to the absence of a quorum. The Annual Meeting will reconvene at 2:00 p.m. Eastern Time on Thursday, Sept. 28, 2017, at 135 Fifth Avenue, 10th Floor, New York. The record date for the Annual Meeting has not changed, and only stockholders of record at the close of business on Aug. 25, 2017, are entitled to vote at the reconvened meeting. The polls will remain open for voting during the adjournment period. About Algodon Wines Through its wholly-owned subsidiaries, Algodon Wines & Luxury Development Group, Inc. -- http://www.algodongroup.com/-- invests in, develops and operates real estate projects in Argentina. AWLD operates a hotel, golf and tennis resort, vineyard and producing winery in addition to developing residential lots located near the resort. The activities in Argentina are conducted through its operating entities: InvestProperty Group, LLC, Algodon Global Properties, LLC, The Algodon - Recoleta S.R.L, Algodon Properties II S.R.L., and Algodon Wine Estates S.R.L. AWLD distributes its wines in Europe through its United Kingdom entity, Algodon Europe, LTD. Marcum LLP, in New York, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2016, citing that the Company has incurred significant losses and needs to raise additional funds to meet its obligations and sustain its operations. These conditions raise substantial doubt about the Company's ability to continue as a going concern. Algodon Wines reported a net loss of $10.04 million on $1.52 million of sales for the year ended Dec. 31, 2016, compared to a net loss of $8.27 million on $1.86 million of sales for the year ended Dec. 31, 2015. As of June 30, 2017, Algodon Wines had $8.07 million in total assets, $4.14 million in total liabilities, $4.80 million in series B convertible redeemable preferred stock and a total stockholders' deficiency of $880,859. ALLIANCE HEALTHCARE: S&P Affirms B+ CCR & Alters Outlook to Stable ------------------------------------------------------------------ S&P Global Ratings notes that Newport Beach, Calif.-based Alliance HealthCare Services continued its improved performance over the first half of the year. It invested in capital spending, which has improved revenue and EBITDA growth, and resulted in leverage near 5x and positive discretionary cash flow. S&P thus affirmed its 'B+' corporate credit rating on Alliance HealthCare Services. S&P revised the outlook to stable from negative. S&P said, "In addition, we assigned a 'B+' rating to Alliance's proposed $125 million revolving credit facility and $380 million first-lien term loan. The recovery rating on this debt is '3', indicating expectations for meaningful (50%-70%; rounded estimate: 60%) recovery in the event of a payment default. At the same time, we assigned a 'B-' rating to the company's $150 million second-lien term loan. The recovery rating on this debt is '6', indicating expectations for negligible (0%-10%: rounded estimate: 0%) recovery in a default "The outlook revision reflects the company's improvement in operating performance and greater pricing stability. The company invested in new equipment and newer lines of business which has resulted in solid revenue and EBITDA growth, leverage declining to 5x, and positive discretionary cash flow. We expect a continuation in EBITDA growth and an improvement in leverage and cash flow generation. The stable outlook reflects our expectation that leverage will remain at or below 5x over the next year based on our expectation that the company will sustain its solid operating performance, pricing will be relatively stable, and the company will generate roughly $40 million to $50 million of discretionary cash flow. "We could lower the rating if pricing pressure intensifies or operating performance weakens, causing leverage to rise above 5.5x. This could occur if the company continues to experience pricing pressure, is not able to convert elevated capital spending into revenue growth, and margins decline more than 250 basis points. "We could raise the ratings if the company is able to outperform our base case and sustain leverage around 4x. This would require a 300-basis-point margin improvement, which could occur if the company's newer lines of business (oncology, interventional medicine) grow at a brisk pace and its investments in equipment result in high growth and margin expansion." ALTON BEAN: Case Summary & 8 Unsecured Creditors ------------------------------------------------ Debtor: Alton Bean Trucking, Inc. 1403 Hwy 84E Amity, AR 71921 Case No.: 17-72352 Type of Business: Founded in 1989, Alton Bean Trucking Inc. is engaged in the business of providing trucking transportation services. Chapter 11 Petition Date: September 20, 2017 Court: United States Bankruptcy Court Western District of Arkansas (Hot Springs) Judge: Hon. Ben T Barry Debtor's Counsel: Marc Honey, Esq. HONEY LAW FIRM, P.A. P.O. Box 1254 1311 Central Avenue Hot Springs, AR 71902 Tel: (501) 321-1007 Fax: (501) 321-1255 E-mail: mhoney@honeylawfirm.com Estimated Assets: $1 million to $10 million Estimated Liabilities: $1 million to $10 million The petition was signed by Gary A. Bean, II, president. A full-text copy of the petition, along with a list of eight unsecured creditors, is available for free at http://bankrupt.com/misc/arwb17-72352.pdf AMN HEALTHCARE: S&P Alters Outlook to Positive & Affirms 'BB-' CCR ------------------------------------------------------------------ S&P Global Ratings affirmed its ratings on AMN Healthcare Services Inc., including the 'BB-' corporate credit rating, and revised the rating outlook to positive from stable. U.S. health care staffing and workforce solutions provider AMN Healthcare Inc. nearly doubled its revenue base over the past few years, increased EBITDA margins several hundred basis points to around 13%, and increased free cash flow to greater than $100 million. The company has been successfully diversifying its service lines, reducing the proportion of revenue exposed to the highly cyclical health care nurse and allied staffing business, which remains fragmented, highly competitive, and has relatively low profit margins. S&P said, "At the same time, we raised the rating on AMN Healthcare Inc.'s senior unsecured debt to 'BB-' from 'B+', and revised the recovery rating to '4' from '5'. The '4' recovery rating indicates our expectation for average (30%-50%; rounded: estimate: 30%) recovery in the event of default. "Our outlook revision follows substantial EBITDA growth and a trajectory of improving free cash flow generation as well as the company's evolution from a traditional health care staffing company to a full service workforce solutions provider, gradually diversifying its revenues away from the highly cyclical nursing and allied solutions segment (62% of 2016 revenues) and deepening its relationship with customers through its managed service programs. This results in credit quality that is becoming more consistent with 'BB' rated peers. "The positive outlook reflects our view that AMN has positioned itself to be more resilient in an economic downturn, resulting in credit quality that is becoming more consistent with 'BB' rated peers. "We expect AMN will sustain its recent improvements, and that leverage levels will generally fluctuate in the 2x-3x range as the company pursues moderate acquisitions that we expect to further diversify revenues away from its cyclical nurse and allied staffing segment. "We could revise the outlook to stable if the company experiences deterioration in business prospects or gets more aggressive in pursuing acquisition-based growth, resulting in leverage sustained in the high-2x range. We could also revise the outlook to stable if the company's acquisitions don't reduce the exposure to the cyclical nursing and allied health segment. A drop in margins by 400 basis points due to a scarcity of nurses or intensifying price-based competition could prompt us to move the outlook back to stable. "We could also revise the outlook if AMN experiences an unforeseen operating issue that results in meaningful customer losses and a sharp contraction in EBITDA, resulting in our expectation for free cash flow to fall short of $100 million annually. "We could raise the rating if we gain greater confidence that AMN will pursue its growth objectives (including acquisitions and share repurchases), and continue to diversify away from the cyclical nursing and allied health staffing segment and generally maintain adjusted debt leverage in the 2x-3x range while generating free operating cash flow in excess of $100 million." ARC-RITE INC: Chapter 727 Claims Bar Date Set for Jan. 5 -------------------------------------------------------- A petition was filed Sept. 7, 2017, commencing an Assignment for the Benefit of Creditors proceeding, pursuant to Chapter 727, Florida Statutes, by Arc-Rite, Inc. as Assignor, to Mark C. Healy of Michael Moecker & Associates, Inc., as Assignee. Pursuant to Section 727.105, Florida Statutes, no proceeding may be commenced against the Assignee except as provided in Chapter 727, and except in the case of a secured creditor enforcing its rights and collateral under Chapter 679, there shall be no levy, execution, attachment, or the like in the respect of any judgment against assets of the estate, other than real property, in the possession, custody, or control of the Assignee. In order to receive any dividend in this proceeding, Parties-in-interest must file a proof of claim with the Assignee on or before January 5, 2018. The case is captioned, ARC-RITE, INC., Assignor, v. MARK HEALY, Assignee, Case No.: 2017-CA-5699, before the Circuit Court Fourth Judicial Circuit, Duval County. Arc-Rite has its principal place of business at 341 North Highway 17, Palatka, Florida 32177. The Assignee may be reached at: Mark C. Healy Michael Moecker & Associates 1883 Marina Mile Boulevard, Suite 106 Fort Lauderdale, Florida 33315. ARCONIC INC: Egan-Jones Hikes Sr. Unsec. Debt Ratings to BB+ ------------------------------------------------------------ Egan-Jones Ratings Company, on July 26, 2017, raised the senior unsecured ratings on debt issued by Arconic Inc. to BB+ from BB. Arconic (NYSE: ARNC), formerly called Alcoa Inc., is a company specializing in lightweight metals engineering and manufacturing. Arconic's products, which include aluminum, titanium, and nickel, are used worldwide in aerospace, automotive, commercial transportation, packaging, building and construction, oil and gas, defense, consumer electronics, and industrial applications. ART & DENTISTRY: Case Summary & 20 Largest Unsecured Creditors -------------------------------------------------------------- Debtor: Art & Dentistry, LLC fdba Beam Bright Dental, LLC 6500 Rock Spring Drive, Suite 110 Bethesda, MD 20817 Business Description: Art & Dentistry, LLC -- http://www.artanddentistry.com-- is a dental services organization with offices in Bethesda, Potomac, Rockville, and Washington DC. The Company's services include family and general dentistry, CEREC one-visit crowns, traditional orthodontics, cosmetic dentistry, invisalign clear braces, porcelain veneers, teeth whitening, dental implants, sedation dentistry and botox cosmetic and juvaderm. Chapter 11 Petition Date: September 20, 2017 Case No.: 17-22579 Court: United States Bankruptcy Court District of Maryland (Greenbelt) Judge: Hon. Wendelin I. Lipp Debtor's Counsel: David E. Lynn, Esq. DAVID E. LYNN, P.C. 15245 Shady Grove Road Suite 465 North Rockville, MD 20850 Tel: (301) 255-0100 Fax: (301) 255-0101 E-mail: davidlynn@verizon.net Estimated Assets: $100,000 to $500,000 Estimated Liabilities: $1 million to $10 million The petition was signed by Ellen Brodsky, managing member. A full-text copy of the Debtor's petition and list of 20 largest unsecured creditors, is available for free at http://bankrupt.com/misc/mdb17-22579.pdf ASPEN COURT: Exclusive Plan Filing Period Extended to Dec. 15 ------------------------------------------------------------- The Hon. Timothy Barnes of the U.S. Bankruptcy Court for the Northern District of Illinois has extended, at the behest of Aspen Court, L.L.C., the periods wherein the Debtor can exclusively file a plan of reorganization and solicit acceptance of the Plan, to and including Dec. 15, 2017, and March 31, 2018, respectively. As reported by the Troubled Company Reporter on Sept. 14, 2017, the Debtor asked the Court to extend the periods wherein the Debtor can exclusively file a plan of reorganization and solicit acceptance of the Plan, to and including Jan. 31, 2018, and March 31, 2018, respectively. The Debtor said it has been diligently pursuing the administration of this Chapter 11 case with a view toward formulating a prompt exit strategy. The Debtor assured the Court that the secured interests of the various lenders are adequately protected and will remain adequately protected throughout the duration of this Chapter 11 case. About Aspen Court Aspen Court, L.L.C. -- http://www.aspencourtwiu.com/-- owns an apartment community located at 1507 W. Jackson Street Macomb, Illinois 61455, with four convenient locations within walking distance to the Western Illinois University Campus. Aspen Court offers floor plans that accommodate all types of residents. It is the only apartment community in Macomb to offer 1, 2, and 3 bedroom apartments and 4 bedroom townhomes. Each apartment has a bathroom for every bedrooom! Its complex has just recently been constructed and contains all of the newest construction and communication technology. Every apartment comes with High-Speed Fiber Optic Internet included with data jacks in every bedroom and living room. Aspen Court filed for Chapter 11 bankruptcy protection (Bankr. N.D. Ill. Case No. 17-16064) on May 24, 2017, estimating its assets and liabilities at between $10 million and $50 million each. The petition was signed by Jonathan Sauser as member and designated representative. Judge Timothy A. Barnes presides over the case. David K Welch, Esq., at Crane, Heyman, Simon, Welch & Clar, serves as the Debtor's bankruptcy counsel. ATHANAS FENCE: Unsecureds to Recover 35% Under Amended Plan ----------------------------------------------------------- Athanas Fence Co., Inc. filed with the U.S. Bankruptcy Court for the Northern District of Illinois an amended proposed disclosure statement in connection with its amended plan of reorganization, dated Sept. 15, 2017. Class III under the proposed plan consists of the allowed non-insider general unsecured claims. The Debtor estimates there to be approximately $440,000 in non-insider General Unsecured Claims. The holders of Class III Claims will be paid 35% of their claim over the course of the Plan. Payments are to be made semi-annually commencing the later of Dec. 15, 2017, or 30 days after the appeal period has expired on the Order Confirming Plan. Class III is impaired. The Debtor will continue its business operations to fund the payments under the Plan of Reorganization. The Debtor expects income to grow from year 2017 through 2021. All payments and distributions under the First Amended Plan will be made James Jeffrey Athanas, the president of the Debtor. The Debtor's original Disclosure Statement proposed to pay Class III - General Unsecured Claims 30% of the total allowed amount, which the Debtor estimated to be approximately $398,000. The original Disclosure Statement provided that all payments under the Plan will be provided by Richard Latarte, the president of the Debtor. A full-text copy of the Disclosure Statement dated August 14, 2017, is available at: http://bankrupt.com/misc/ilnb17-03883-50.pdf A full-text copy of the Amended Disclosure Statement dated September 15, 2017, is available at: http://bankrupt.com/misc/ilnb17-03883-54.pdf About Athanas Fence Co. Athanas Fence Co., Inc. sought protection under Chapter 11 of the Bankruptcy Code (Bankr. N.D. Ill. Case No. 17-03883) on Feb. 10, 2017. The petition was signed by James J. Athanas, president. The Debtor estimated assets of less than $50,000 and liabilities of less than $500,000. The case is assigned to Judge Timothy A. Barnes. The Debtor is represented by Joseph E. Cohen, Esq., at Cohen & Krol. BAVARIA YACHTS: Wants Plan Filing Period Extended to Jan. 30 ------------------------------------------------------------ Bavaria Yachts USA, LLLP, asks the U.S. Bankruptcy Court for the Northern District of Georgia to extend its exclusive period to file a Chapter 11 Plan through and including Jan. 30, 2018, and the exclusive period within which to solicit acceptances of a plan through Feb. 28, 2018. A hearing on the Debtor's request is set for Oct. 10, 2017, at 1:30 p.m. On June 8, 2017, the Court granted the Debtor's request to extend the exclusivity period to file a plan through Sept. 30, and the exclusive period within which to solicit acceptances of a plan to Oct. 30. As reported by the Troubled Company Reporter on May 17, the Debtor requested the Court to extend its exclusive period to file a Chapter 11 Plan through Sept. 30, as well as the Debtor's exclusive period within which to solicit acceptances of a plan through Oct. 30. The Debtor explained that extending the exclusivity deadline is appropriate due to the complexity of the case and the scheduled mediation with Creditor Bavaria Yachtbau GmbH. In addition, the Debtor claimed that it is in the process of selling its last vessel, and as such, the additional time would assist the Debtor in negotiating such sale and allow the Debtor to formulate a more definitive plan. The Debtor says that an adversary proceeding effecting the estate's rights to property remains pending and it will affect a plan. About Bavaria Yachts USA Bavaria Yachts USA, LLLP, is a Georgia limited liability limited partnership which is in the business of buying and selling new and used Bavaria boats. Bavaria Yachts USA, LLLP sought protection under Chapter 11 of the Bankruptcy Code (Bankr. N.D. Ga. Case No. 16-68583) on Oct. 18, 2016. The petition was signed by Kenneth Feld, manager of Oddbody LLC, the Debtor's general partner. At the time of the filing, the Debtor estimated its assets and liabilities at $1 million to $10 million. The Debtor tapped Louis G. McBryan, Esq., of McBryan LLC, to serve as legal counsel in connection with its Chapter 11 case. The Debtor hired Alexander Dombrowsky, Esq., at Robert Allen Law, as its special counsel; and Mark M. Chase and Chase CPA, LLC, as its accountants. An official committee of unsecured creditors has not been appointed in the case. BBQ BOSS: Unsecureds to be Paid $140.85 Per Month Over 10 Years --------------------------------------------------------------- Unsecured creditors of BBQ Boss, LLC, will receive a monthly payment of $140.85 under the company's proposed plan to exit Chapter 11 protection. Under the restructuring plan, unsecured creditors will be paid in monthly installments over 10 years with interest at the rate of 4% per annum. Unsecured claims are estimated to be $13,912.28. The plan will be funded from the company's income generated from the operations of its business, according to its disclosure statement filed on September 12 with the U.S. Bankruptcy Court for the Northern District of Alabama. A full-text copy of the disclosure statement is available for free at https://is.gd/FHLZmq About BBQ Boss LLC BBQ Boss, LLC is a convenience store and restaurant located at 1429 U.S. Highway 78 West, Oxford, Alabama. The Debtor filed a voluntary petition under Chapter 11 of the Bankruptcy Code (Bankr. N.D. Ala. Case No. 17-40046) on January 12, 2017, disclosing less than $1 million in both assets and liabilities. Judge James J. Robinson presides over the case. Harry P. Long, Esq., represents the Debtor as bankruptcy counsel. BCW EXPRESS: Allowed to Use Up To $100K Cash Collateral ------------------------------------------------------- Judge Marci B. McIvor of the U.S. Bankruptcy Court for the Eastern District of Michigan authorized BCW Express Delivery, Inc., to receive, collect, and make use of the cash collateral in its possession and that it receives in the ordinary course of its business only until the earlier of the date of the final hearing or the date that the order would become a final order. The Court will hold a final hearing on the continued use of cash collateral on Oct. 10, 2017 at 10:30 a.m. The maximum amount of cash collateral necessary to avoid immediate and irreparable harm is $100,000. The Debtor may use said cash collateral for the reasonable and necessary operating expenses incurred in the ordinary course of its business, including, but not limited to, current taxes incurred, personal property taxes, employee salaries, unpaid withholding taxes, property insurance, vehicle repairs and maintenance, utilities and other ordinary course charges necessary for the Debtor's operations, U.S. Trustee quarterly fees and court approved fees and expenses of professionals retained by the Debtor. The following creditors will receive monthly adequate protection payments beginning Sept. 15, 2017, and every month thereafter up through confirmation of any plan: Cap Call Inc. $500 Complete Business Solutions Group, Inc. $500 Spark Funding $50 Viceroy Capital Funding $300 Yellowstone Capital $500 A full-text copy of the Order, dated Sept. 5, 2017, is available at https://is.gd/mAK9Lo About BCW Express Delivery BCW Express Delivery, Inc., a Michigan corporation, owns several Federal Express routes located geographically from Port Huron to Chesterfield, Michigan. The business is located at 5290 River Rd., East China, MI. BCW Express Delivery filed a Chapter 11 petition (Bankr. E.D. Mich. Case No. 17-52368) on Aug. 31, 2017. The petition was signed by William Channon Worthen, president. At the time of filing, the Debtor estimated less than $50,000 in assets and $100,000 to $500,000 in liabilities. The Debtor is represented by Edward J. Gudeman, Esq. at Gudeman & Associates, P.C. BELLEVILLE DEVELOPMENT: Seeking New Buyer, More Time to File Plan ----------------------------------------------------------------- Belleville Development Group, LLC, requests the U.S. Bankruptcy Court for the District of New Jersey for a 120-day extension of the exclusive period within which the Debtor may (a) file a chapter 11 plan through January 17, 2018; and (b) solicit votes on a chapter 11 plan through March 18, 2018. The Debtor says a deal to sell its assets have fallen through and it is in talks with a new buyer. Absent the requested relief, the Debtor's Exclusive Filing Period was slated to expire September 19 and the Exclusive Solicitation Period will expire on November 19. At the outset of this case, the Debtor says its goal was to consummate a sale of the its sole asset, the real property located at 620-632 Washington Avenue, Belleville, New Jersey. To achieve this end, the Debtor conducted an auction of the Property after the Petition Date, and at the conclusion of said auction, Anthony Marchigiano or his designee was deemed the successful purchaser of the Real Property. Consequently, the Court approved the sale of the Real Property to Mr. Marchigiano on July 26, 2017. However, subsequent to entry of the Sale Order, Mr. Marchigiano terminated the asset purchase agreement with the Debtor and the proposed sale of the Real Property to Purchaser was terminated. Notwithstanding Mr. Marchigiano's termination of his asset purchase agreement, the Debtor forges ahead and continues to solicit bids on the Real Property. While the Debtor's goal has been delayed, the Debtor tells the Court that it has been in negotiations with at least two parties (one being the party approved as the back-up bidder in the Sale Order) to purchase the Real Property. In addition to taking the necessary steps to achieve the Debtor's overarching goal through this proceeding, the Debtor and its professionals also addressed several typical tasks related to a chapter 11 proceeding. The Debtor avers that attending to the issues surrounding the sale of the Real Property and more importantly, the uncertainty of available funds, has made it difficult for the Debtor to address and formulate a proposed plan of liquidation. Accordingly, the Debtor requests the extension of the Exclusivity Period to complete its sale related efforts. The Debtor says it firmly believes that it is at a critical juncture in this case and needs to finalize the terms of a sale of the Real Property. As such, this requires the full attention of the Debtor and its professionals. Additionally, the Debtor asserts that any recovery to its stakeholders will naturally flow from the sale of the Real Property. When a sale does occur, the Debtor will then be in a better position to focus its efforts on formulating a plan of liquidation that addresses claims, causes of action and distributions to creditors within the priority scheme of the Bankruptcy Code. A hearing on the Motion will be held on October 17, 2017, at 10:00 a.m. About Belleville Development Group, LLC Belleville Development Group, LLC, based in Virginia Beach, VA, filed a Chapter 11 petition (Bankr. D.N.J. Case No. 17-20469) on May 22, 2017. Stephen Ravin, Esq., at Saul Ewing LLP, serves as bankruptcy counsel. In its petition, the Debtor estimated $1 million to $10 million in both assets and liabilities. The petition was signed by Anthony Regan, managing member. BLACKSMITH SQUARE: Case Summary & 9 Unsecured Creditors ------------------------------------------------------- Debtor: Blacksmith Square Partners LLC 1102 Ellsworth Blvd Malta, NY 12020 Business Description: Blacksmith Square owns in fee simple interest a parcel of undeveloped commercial real estate measuring 5.34 acre located at 2458 Route 9 Malta, NY 12020, valued by the Company at $3 million. It is also the fee simple owner of a .7 acre of undeveloped commercial property located at 11 Blacksmith Dr Malta, NY 12020, valued by the Company at $150,000. Blacksmith Square is equally owned by Neil Swingruber and Bruce Schnitz. Chapter 11 Petition Date: September 20, 2017 Case No.: 17-11745 Court: United States Bankruptcy Court Northern District of New York (Albany) Debtor's Counsel: Michael Leo Boyle, Esq. TULLY RINCKEY P.L.L.C. 441 New Karner Rd. Albany, NY 12205 Tel: 518-218-7100 E-mail: mboyle@tullylegal.com Total Assets: $3.15 million Total Liabilities: $3.05 million The petition was signed by Neil S. Swingruber, Jr., member. A full-text copy of the petition and list of nine unsecured creditors is available for free at http://bankrupt.com/misc/nynb17-11745.pdf BRINKER INT'L: Egan-Jones Cuts LC Sr. Unsecured Rating to BB ------------------------------------------------------------ Egan-Jones Ratings Company, on August 31, 2017, lowered the local currency senior unsecured rating on debt issued by Brinker International Inc. to BB from BB+. Previously, on July 17, 2017, EJR lowered the local currency and foreign currency senior unsecured ratings on debt issued by Brinker to BB+ from BBB-. Brinker International, Inc. is an American multinational hospitality industry company that owns Chili's and Maggiano's Little Italy restaurant chains. CAPITOL SUPPLY: Case Summary & 10 Unsecured Creditors ----------------------------------------------------- Debtor: Capitol Supply, Inc. 851 Broken Sound Parkway, Suite 280 Boca Raton, FL 33487 Type of Business: Since 1983, Capitol Supply has provided the United States Government, the US Military, State and local government agencies and consumer and commercial customers worldwide various products needed to operate their businesses. Capitol Supply offers office supply, office furniture, hardware, tools, auto parts, cleaning supplies, dorms and quarters, package room, and GSA schedule needs. Capitol Supply was formerly known as Capitol Furniture Distributing Company and changed its name to Capitol Supply, Inc. in March 2005. Chapter 11 Petition Date: September 20, 2017 Case No.: 17-21544 Court: United States Bankruptcy Court Southern District of Florida (West Palm Beach) Judge: Hon. Erik P. Kimball Debtor's Counsel: Bradley S Shraiberg, Esq. SHRAIBERG LANDAU & PAGE PA 2385 NW Executive Center Dr. #300 Boca Raton, FL 33431 Tel: (561) 443-0801 Fax: (561) 998-0047 E-mail: bss@slp.law Estimated Assets: $1 million to $10 million Estimated Liabilities: $1 million to $10 million The petition was signed by Robert J. Steinman, director and chief executive officer. A copy of the Debtor's list of 10 unsecured creditors is available for free at http://bankrupt.com/misc/paeb17-21544.pdf A full-text copy of Capitol Supply's petition is available for free at: http://bankrupt.com/misc/paeb17-21544_petition.pdf CARL WEBER GREEN: Voluntary Chapter 11 Case Summary --------------------------------------------------- Debtor: Carl Weber Green, LLC 1185 Avenue of the Americas, 18th Floor New York, NY 10036 Type of Business: Carl Weber Green is affiliated with 3490RT94, LLC, which sought bankruptcy protection on Nov. 17, 2016 (Bankr. D.N.J. Case No. 16-32067). 3490RT94 listed its business as a Single Asset Real Estate. Case No.: 17-29110 Chapter 11 Petition Date: September 20, 2017 Court: United States Bankruptcy Court District of New Jersey (Newark) Debtor's Counsel: Stuart J. Glick, Esq. THOMPSON & KNIGHT LLP 900 Third Avenue, FL 20 New York, NY 10022 Tel: 212-751-3392 Fax: 214-880-3290 Email: stuart.glick@tklaw.com Estimated Assets: $1 million to $10 million Estimated Liabilities: $500,000 to $1 million The petition was signed by Philip Sivin, manager. The Debtor did not file a list of 20 largest unsecured creditors together with the petition. A full-text copy of the petition is available for free at: http://bankrupt.com/misc/njb17-29110.pdf CAROL LLOYD: Allowed to Use Cash Collateral for Next 30 Days ------------------------------------------------------------ Judge George R. Hodges of the U.S. Bankruptcy Court for the Western District of North Carolina signed an interim order allowing Carol Lloyd, Inc. to use up to $307,690 of cash collateral during the next 30 days or until final hearing, whichever occurs first. A hearing on the Debtor's continued use of cash collateral will be held on Oct. 18, 2017 at 9:30 a.m. The Debtor has represented that these entities are Potential Secured Creditors: (a) Corporation Service Company, as Representative; and (b) EIN CAP, Inc. At the time of the petition, the Debtor has accounts receivable of approximately $312,000. The Debtor needs to use these receivables to continue normal operations and to maintain its going concern value. However, the Potential Secured Creditors have not consented to Debtor's use of cash collateral. Accordingly, as adequate protection, and to the extent that cash collateral is used, the Potential Secured Creditors will receive a postpetition lien on the Debtor's accounts receivable to the extent that the prepetition lien on the same type of collateral was valid, perfected, enforceable, and non-avoidable as of the petition date. The Debtor's use of cash collateral is contingent upon Debtor filing its 941 first and second quarter 2017 reports, tax returns for first and second quarter 2017 as well as payment of taxes for those quarters in full by no later than Oct. 22, 2017. A full-text copy of the Interim Order, dated Sept. 5, 2017, is available at https://is.gd/he8lrr About Carol Lloyd Headquartered in Asheville, North Carolina, Carol Lloyd, Inc., doing business as MMDS of Asheville, has been providing X-ray laboratory services (including dental) since 2004. Carol Lloyd, Inc., is an affiliate of MMDS of North Carolina Inc., which sought bankruptcy protection (Bankr. E.D.N.C. Case No. 17-01749) on April 7, 2017. Carol Lloyd filed a Chapter 11 bankruptcy petition (Bankr. W.D.N.C. Case No. 17-10207) on May 15, 2017, estimating its assets at up to $50,000 and liabilities between $1 million and $10 million. The petition was signed by Lloyd M. Williams, III, authorized representative. Judge George R. Hodges presides over the case. David R. Badger, Esq., at David R. Badger, P.A., serves as the Debtor's bankruptcy counsel. CARTEL MANAGEMENT: May Exclusively File Plan Until Dec. 29 ---------------------------------------------------------- The Hon. Deborah J. Saltzman of the U.S. Bankruptcy Court for the Central District of California has extended, at the behest of Cartel Management, Inc., and Titans of Mavericks, LLC, the exclusivity periods for the Debtors to file a plan of reorganization and obtain acceptance of the plan to and including Dec. 29, 2017, and Feb. 27, 2018, respectively. The hearing on the extension, currently set for Sept. 25, 2017, at 2:00 p.m., is vacated. The status conference in the jointly administered cases, currently set for Sept. 25, 2017, at 2:00 p.m., is continued to Feb. 21, 2018, at 2:00 p.m. As reported by the Troubled Company Reporter on Aug. 31, 2017, the Debtors asked the Court to extend the exclusivity periods for the Debtors to file a plan of reorganization and obtain acceptance of the plan, respectively, to and including Dec. 29, and Feb. 28, 2018, respectively. The Debtors contended that during the past several months, they have been engaged in extensive marketing efforts of their business and assets. The Debtors also contended that they are in the process of negotiating a sale of certain of their assets; while agreements in principal have been reached with the buyer, the Debtors and the buyer continue to negotiate the specific terms of an asset purchase agreement. The Debtors anticipated filing a sale motion concurrently with, or soon after, the filing of the Exclusivity Motion. About Cartel Management Cartel Management, Inc. and Titans of Mavericks, LLC -- http://www.titansofmavericks.com/-- together, promote, organize and host a sporting event in "big wave" surfing known as "Titans of Mavericks" at the Pacific Ocean surf break popularly known as "Maverick's" located near Half Moon Bay, California. Cartel and Titans filed Chapter 11 petitions (Bankr. C.D. Cal. Lead Case No. 17-11179) on Jan. 31, 2017. The petitions were signed by Griffin Guess, president of Cartel. At the time of filing, Cartel estimated assets of less than $1 million and estimated liabilities of $1 million to $10 million. Titans estimated assets of less than $50,000 and liabilities of less than $500,000. Judge Deborah J. Saltzman presides over the cases. The Debtors engaged David L. Neale, Esq., at Levene, Neale, Bender, Yoo & Brill LLP, in Los Angeles, California, as bankruptcy counsel. The Debtors tapped Hartford O. Brown, Esq., at Klinedinst PC, as special counsel in relation to the potential sale of their assets, and to handle disputes with Red Bull Media House North America, Inc., and other third parties. The Debtors also tapped Tyler Paetkau, Esq., of Hartnett, Smith & Paetkau to represent them on certain proceedings, including administrative proceedings before the San Mateo County Harbor District, the California Coastal Commission, the San Mateo County Planning and Building Department, and National Oceanic and Atmospheric Administration. CATALENT INC: S&P Affirms 'BB-' CCR on Planned Cook Acquisition --------------------------------------------------------------- Catalent Inc. announced its intention to acquire Bloomington, Ind.-based biologics-focused contract development and manufacturing organization (CDMO) Cook Pharmica. The transaction is valued at $950 million with $750 million paid at close, funded with a combination of cash on hand, debt, and equity, and $200 million paid over four years. S&P Global Ratings thus affirmed its 'BB-' long-term corporate credit rating on Somerset, N.J.-based biopharmaceutical CDMO Catalent Inc. The outlook remains stable. S&P said, "We will provide an update on the issue-level ratings when more is known on the expected capital structure. "The affirmation reflects our view that Catalent's acquisition of Cook Pharmica is within our expectations for adjusted debt leverage at the current rating and does not materially change our overall view of Catalent's competitive position. We believe that TTM net debt leverage will rise to about 5.5x at the close of the transaction, but we expect leverage to quickly decline to the long-term range of 4x-5x. We believe the acquisition of Cook Pharmica is a credit positive for Catalent from a competitive position perspective, as it expands the company's capabilities in outsourced biologics manufacturing, a faster growing area of the pharmaceutical industry. The acquisition will also provide some revenue diversification, as biologics will now contribute 21% from 14%. "Our stable outlook on Catalent Inc. reflects our expectations that the company will quickly reduce net leverage to the 4x-5x range over the next 12 months as it integrates Cook Pharmica. We expect Catalent to grow organic revenue in the mid-single-digits, similar to the overall pharmaceutical industry, and slightly improve margins over the next 12 months by about 50 basis points. "In the more likely scenario, we could consider a higher rating in the next 12 months if we expect leverage to remain in the 4x-4.5x range. We would expect to see the company raise its profitability such that it can fund more of its acquisition strategy and share repurchases through free cash flow, allowing leverage to consistently stay lower, and we would expect the company to publicly commit to a long-term adjusted leverage target of 4x or lower. In this scenario, we would expect the company to successfully integrate Cook and improve capacity utilization at that facility, raising margins. "We could consider lowering the rating if Catalent makes another large acquisition in the next year that raises long-term leverage above 5x for over a year and creates significant integration risk. Another acquisition in the next 12 months of $750 million or more could prompt a downgrade." CATALENT PHARMA: Moody's Affirms 'B1' CFR Amid Cook Pharmica Deal ----------------------------------------------------------------- Moody's Investors Service affirmed the B1 Corporate Family Rating and B1-PD Probability of Default Rating of Catalent Pharma Solutions, Inc. The rating agency also affirmed the Ba3 ratings on Catalent's existing senior secured credit facilities and the B3 rating on the existing senior unsecured notes. Finally, Moody's affirmed Catalent's Speculative Grade Liquidity Rating of SGL-1. The outlook is stable. These actions follow Catalent's announcement that it will acquire privately owned Cook Pharmica for $950 million. The affirmation reflects Moody's view that the Cook Pharmica acquisition will accelerate Catalent's penetration into the fast-growing biologics market and will add important capabilities that Catalent currently lacks. The acquisition will increase Catalent's pro forma adjusted debt to EBITDA to 5.6 times from 4.9x as of June 30, 2017. This calculation assumes that the $200 million deferred portion of the purchase price is debt-funded. The affirmation further signals that Moody's expects Catalent's adjusted debt to EBITDA to return to 5.0 times by 2018's end. The instrument ratings are subject to change as additional financing details about the transaction become publically available. Ratings affirmed: Catalent Pharma Solutions, Inc. Corporate Family Rating at B1 Probability of Default Rating at B1-PD Senior secured revolving credit facility expiring 2019 at Ba3 (LGD 3) Senior secured term loans due 2021 at Ba3 (LGD 3) Senior unsecured notes due 2024 at B3 (LGD 6) Speculative Grade Liquidity Rating at SGL-1 The outlook is stable. RATINGS RATIONALE Catalent's B1 rating is constrained by its relatively high financial leverage and modest free cash flow. The rating is also constrained by volatility inherent in the pharmaceutical contract manufacturing industry. Lost revenue when customers' drugs become generic, pricing pressure exerted by large clients, and high fixed costs can create volatility in net profit and cash flows. The rating is supported by Moody's expectation that Catalent will benefit over the next 2-3 years as more drugs coming to market require more complex dosage solutions. In addition, Moody's acknowledges Catalent's push into more stable, albeit lower margin, businesses such as consumer and animal health. The rating is also supported by Catalent's good scale and leading market position in the development and manufacturing of softgels and other oral drug delivery technologies. The company also maintains a diversified customer base and commands a large library of patents, know-how, and other intellectual property that raise barriers to entry and enhance margins. These factors help mitigate the volatility created by the inherent industry challenges discussed. The stable rating outlook reflects Moody's expectation that leverage will show moderate improvement over the next 12-18 months as previously soft businesses, such as modified release technologies and pre-filled syringes, stabilize and begin to grow again. In addition, Moody's expects new product lines, such as animal health and biologics, to help Catalent's growth. The Speculative Grade Liquidity Rating of SGL-1 reflects Moody's expectation that Catalent's liquidity will remain very good over the next 12 to 18 months. Catalent's liquidity will be supported by free cash flow in excess of $150 million over the next year, a strong cash balance ($288 million as of June 30, 2017), and $188 million of availability under its $200 million revolver. The ratings could be upgraded if Catalent reduces financial leverage such that its debt to EBITDA approaches 4.0 times. Successful integration of acquisitions and organic growth that results in increased scale and improved business line diversity, including reduced concentration in softgels, would also support an upgrade. The ratings could be downgraded if Moody's expects Catalent's financial leverage to be sustained above 5.5 times. The ratings could also be downgraded if Catalent's earnings deteriorate or if the company adopts a more aggressive acquisition strategy. Catalent Pharma Solutions, Inc., based in Somerset, New Jersey, is a leading provider of development solutions and advanced delivery technologies for drugs, biologics and consumer health products. These include the company's formulation, development and manufacturing of softgels and other products for the prescription, consumer, and animal health industries. The company reported revenue of approximately $2.1 billion for the twelve months ended June 30, 2017. The principal methodology used in these ratings was Business and Consumer Service Industry published October 2016. CATHEDRAL HILL: Taps Larkin Hoffman as Legal Counsel ---------------------------------------------------- Cathedral Hill Hospitality Inc. seeks approval from the U.S. Bankruptcy Court for the District of Minnesota to hire legal counsel in connection with its Chapter 11 case. The Debtor proposes to employ Larkin Hoffman Daly & Lindgren Ltd. to, among other things, give legal advice regarding its duties under the Bankruptcy Code; negotiate with creditors; and assist in the preparation of a bankruptcy plan. Thomas Flynn, Esq., the attorney who will be handling the case, will charge an hourly fee of $450. The Debtor paid the firm a retainer in the amount of $15,000, including the filing fee of $1,717. Mr. Flynn disclosed in a court filing that he and his firm do not hold or represent any interest adverse to the Debtor. Larkin Hoffman can be reached through: Thomas J. Flynn, Esq. Larkin Hoffman Daly & Lindgren Ltd. 8300 Norman Center Drive, Suite 1000 Minneapolis, MN 55437-1060 Phone: 952-835-3800 / 952-896-3362 Fax: 952-896-3333 Email: tflynn@larkinhoffman.com Email: info@larkinhoffman.com About Cathedral Hill Hospitality Inc. Cathedral Hill Hospitality Inc. sought protection under Chapter 11 of the Bankruptcy Code (Bankr. D. Minn. Case No. 17-32895) on September 12, 2017. At the time of the filing, the Debtor disclosed that it had estimated assets and liabilities of less than $500,000. Judge William J. Fisher presides over the case. CBL & ASSOCIATES: Fitch Affirms 'BB' Preferred Stock Rating ----------------------------------------------------------- Fitch Ratings has affirmed the ratings of CBL & Associates Properties, Inc. (NYSE: CBL) and its operating partnership, CBL & Associates Limited Partnership at 'BBB-'. The Ratings Outlook has been revised to Negative from Stable. KEY RATING DRIVERS The Negative Outlook reflects Fitch's view that CBL has weaker access to capital (secured and unsecured debt and equity) than most other investment-grade REITs. However, Fitch views positively the company's recent access to the unsecured bond market to further unencumber the portfolio. Market sentiment across most capital providers for 'B' malls has eroded given the challenges ascertaining the long-term productivity and financeability of this asset class. The company also has relatively weak unencumbered asset coverage of unsecured debt, particularly given that Tier 2 assets comprise approximately 50% of the unencumbered pool. In addition, property-level performance has been uneven, with declining occupancies, relatively flat SSNOI growth and tenant sales per square foot over the last several years, due primarily to in-line tenant bankruptcies and a more challenging leasing environment. Over the short term, Fitch believes that portfolio operating metrics will be stable to down slightly, but long-term 'B' malls fundamentals will likely decline. These factors are balanced by Fitch's expectation of investment-grade leverage and fixed-charge coverage (FCC) metrics. Further, while 'B' malls are less financeable in the mortgage market than most traditional real estate assets, they are considerably more financeable than niche asset classes such as casinos, data centers and hospitals. PROPERTY-LEVEL FUNDAMENTALS UNEVEN The company's operating performance has been affected by negative retailer trends, in particular tenant bankruptcies and store closures. For the 12-months ended June 30, 2017, the company's stabilized mall same-center tenant sales per square foot was $373, down from $382 a year earlier, year-over-year stabilized mall occupancy declined approximately 100 basis points to 90.5% and mall same-center NOI declined 1.7% for the six months ended June 30, 2017. Fitch expects some stabilization in operating metrics as the company backfills vacant space; however, Fitch expects minimal same-center NOI growth during the projection period. EVOLVING ACCESS TO CAPITAL Fitch views CBL's access to most forms of debt and equity capital to be at the lower end of the investment-grade REIT spectrum and it has weakened since the time Fitch initiated ratings. Mortgage availability for 'B' malls is less plentiful and more discriminating than in prior years and has weakened over the last year. Similarly, Fitch views CBL's access to non-bank unsecured debt capital as weak compared to investment-grade peers when measured by bond issuance spreads, attributable to its asset class and market sentiment around less-productive malls. CBL's ability and willingness to issue unsecured debt in August 2017 was a credit positive on the margin. However, the widening in spreads for CBL's issuances juxtaposed against REIT spreads tightening may reflect deteriorating capital markets access. Liquidity is not a concern given manageable unsecured debt maturities over the next few years; however, access to attractively priced debt and equity capital is a key rating consideration for REITs given distribution requirements. CBL's common equity is trading at a 51% discount to consensus net asset value, which is one of the largest discounts in Fitch's rated universe (the REIT index is at a 1% discount). Fitch attributes the discount to the wide bid-ask spread for 'B' malls generally, as the market struggles to ascertain the long-term viability and value of less productive malls. By extension, thinner investor demand for 'B' malls limits the extent to which CBL can raise equity through asset sales. ADEQUATE LEVERAGE AND COVERAGE Fitch expects that leverage will migrate towards the mid-to-low 6.0x's, driven by (re)development NOI coming on line and asset give-backs to lenders. Fitch expects minimal SSNOI growth over the projection period. CBL's LTM leverage was in the mid-6.0x area at June 30, 2017, relatively unchanged from Dec. 31, 2016 and 2015. When treating 50% of CBL's preferred stock as debt, leverage would be approximately 0.5x higher. Fitch expects fixed-charge coverage to remain relatively unchanged from the low 2.0x's for the trailing 12 months ended June 30, 2017. This level is appropriate for the rating but weaker than most investment grade REITs in the current rate environment. LOW UNENCUMBERED ASSET COVERAGE OF UNSECURED DEBT June 30, 2017 unencumbered asset coverage of unsecured debt was 1.7x when applying a stressed 9.0% capitalization rate to unencumbered NOI. This ratio is low for the current rating, and is driven in part by approximately 50% of the company's unencumbered NOI being derived from Tier 2 malls whose tenants generate only $327 sales per square foot. When giving credit only to Tier 1 unencumbered assets, coverage would be 0.6x. Secured debt financing for less productive malls has become less plentiful, calling into question the depth of contingent liquidity provided by the company's unencumbered pool. NEGATIVE RATING OUTLOOK The Outlook revision to Negative principally reflects Fitch's expectation that the company's access to several forms of capital (common equity, unsecured and secured debt) will remain challenged, below that of investment-grade peers and increasingly more comparable to that of below-investment-grade REITs. Further, Fitch expects property-level fundamentals will remain under pressure due to a difficult retail environment, placing pressure on the company's ability to grow cash flow. Fitch believes it is unlikely there will be positive revision in investor sentiment and therefore property liquidity and financeability will be challenged. Regardless of investor perception, REITs' need for consistent access to capital heightens the implications of investor sentiment on such access. Moreover, while liquidity is adequate through the rating horizon, Fitch believes negative retail headlines will continue and 'B' mall sentiment is unlikely to improve. DERIVATION SUMMARY Relative to the broader mall REIT sector, CBL's levels of occupancy, SSNOI growth, leasing spreads and tenant quality are weaker than Simon Property Group (IDR of 'A') and similar to B-mall peer Washington Prime (IDR of 'BBB-'). In addition, the company has weaker access to capital, given its ~50% equity trading discount to NAV and wide spreads at which its bonds trade relative to the broader peer set. Further, secured lender sentiment for the B-mall asset class has declined to a level that Fitch believes is below that of many other retail commercial real estate asset classes. CBL has higher leverage than Washington Prime, although Fitch expects leverage for both to center in the low-to-mid 6.0x's range during the projection period. KEY ASSUMPTIONS Fitch's key assumptions within the agency's rating case for the issuer include: -- Annual SSNOI growth of between 0% - 1.5% for 2017 - 2019; -- Annual development/redevelopment spend of $175 to $250 million for 2017 - 2019. The weighted average initial yield on cost for projects coming online is approximately 8%; -- Total non-core asset sales of approximately $575 million; -- Lender give-backs of approximately $200 million; -- Annual recurring capital expenditures of $120 million; -- Total bond issuance of $900 million for 2017 - 2019. RATING SENSITIVITIES Future Developments That May, Individually or Collectively, Lead to Fitch Revising the Outlook to Stable at a 'BBB-' IDR -- Improved capital markets sentiment regarding 'B' malls, specifically enhanced insurance company lending to the sector, bond issuance pricing closer to investment-grade peers, or a lower NAV discount for the company's common stock which may result in the company raising equity. -- Fitch's expectation of leverage sustaining below 6.0x; -- Fitch's expectation of fixed-charge coverage sustaining above 2.5x. Future Developments That May, Individually or Collectively, Lead to Negative Rating Action -- Should Fitch's opinion of CBL's access to debt and equity capital fail to improve from current levels; -- Sustained deterioration in operating fundamentals or asset quality (e.g., sustained negative SSNOI results or negative leasing spreads); -- Fitch's expectation of leverage sustaining above 7.0x (leverage before preferred stock was in the mid-6.0x's for the TTM ended June 30, 2017; -- Fitch's expectation of fixed-charge coverage sustaining below 1.8x (coverage for the TTM ended June 30, 2017 was in the low 2.0x's); -- Reduced financial flexibility stemming from significant utilization under lines of credit; -- Failure to maintain unencumbered asset coverage of unsecured debt (based on a stressed 9% cap rate) around 2.0x (coverage was 1.7x as of June 30, 2017). LIQUIDITY CBL's base case liquidity coverage ratio of 1.4x through the end of 2019 is good for the rating and is driven primarily by limited near-term debt maturities and good availability under the company's unsecured line of credit. Fitch defines liquidity coverage as sources of liquidity divided by uses of liquidity. Sources of liquidity include unrestricted cash, availability under unsecured revolving credit facilities, and projected retained cash flow from operating activities after dividends. Uses of liquidity include pro-rata debt maturities, expected recurring capital expenditures and remaining development costs. The company ended the June 30, 2017 quarter with $29.6 million of cash and equivalents and has a $1.1 billion revolver availability (comprised of three separate facilities) with aggregate outstanding borrowings of $181.1 million. The revolvers mature in 2019/2020 with a company option to extend those maturing in 2019 to October 2020. FULL LIST OF RATING ACTIONS Fitch has affirmed the following ratings: CBL & Associates Properties, Inc. -- Long-Term Issuer Default Rating (IDR) at 'BBB-' -- Preferred stock at 'BB'. CBL & Associates Limited Partnership -- Long-Term IDR at 'BBB-' -- Senior unsecured lines of credit at 'BBB-'; -- Senior unsecured term loans at 'BBB-'; -- Senior unsecured notes at 'BBB-'. Fitch has revised the Rating Outlook to Negative from Stable. CHARTER COMMUNICATIONS: Egan-Jones Gives BB+ Unsec. Debt Rating --------------------------------------------------------------- Egan-Jones Ratings Company, on July 31, 2017, assigned BB+ senior unsecured ratings on debt issued by Charter Communications Inc./Old. Charter Communications is an American cable telecommunications company, which offers their services to consumers and businesses under the branding of Charter Spectrum. CHRISTOPHER BROGDON: Files for Chapter 11 After Muni Bonds Mess --------------------------------------------------------------- On Sept. 15, 2017, Christopher Brogdon and his wife Connie Brogdon filed a voluntary petition under Chapter 11 of the Bankruptcy Code (Bankr. N.D. Ga. Case No. 17-66172) in Atlanta, Georgia. Mr. Brogdon, who is doing business as Brogdon Family, LLC, Arcadia Partners, LLC, GA Tenn Nursing, LLC, and Joroby Consulting, LLC, is represented by: Theodore N. Stapleton Theodore N. Stapleton, P.C. 2802 Paces Ferry Road, Suite 100-B Atlanta, GA 30339 Tel: (678) 361-6211 Fax : (404) 935-5344 E-mail: tstaple@tstaple.com The Peiffer Rosca Wolf Law Firm disclosed in a statement that Mr. Brogdon is currently the target of an SEC action filed in November 2015. According to the SEC, Mr. Brogdon put together a string of municipal bond and private offerings over a period of years that claimed to raise money for investments in nursing, assisted living, and retirement facilities. Instead of using investor proceeds from the Brogdon bond offerings for the purposes for which they were intended, Mr. Brogdon allegedly conducted a scheme whereby he diverted a portion of the proceeds to either pay for his and his wife's lavish lifestyles or to prop up the scheme. Also, contrary to the stated use of proceeds in the offering materials, Mr. Brogdon allegedly commingled investor funds, and used the commingled investor funds in part to make Ponzi-like payments to investors in other Mr. Brogdon bond offerings. Subsequently to being charged by the SEC, Mr. Brogdon agreed to a Court-approved Plan to pay back investors. The impact of the Brogdon bankruptcy on that Plan is uncertain at this time. The Peiffer Rosca Wolf and Goldman Scarlato & Penny law firms filed a lawsuit in August 2016 to recover money lost by investors in connection with investments in the municipal bond scheme offered and sold by Christopher Brogdon. The lawsuit was filed on behalf of a class of investors in several Brogdon bonds, against the trustee bank for the majority of the Brogdon bonds, those bonds' underwriters, and the underwriters' principals. The lawsuit seeks to redress harm suffered by investors as a result of the trustee and the underwriters' alleged misconduct, and it is currently pending in the United States District Court for the District of New Jersey. According to Peiffer Rosca Wolf Law Firm, investors in municipal bonds offered and sold by Christopher Brogdon may contact the firm at http://www.brogdoninvestors.com/or contact the investor rights lawyers at: Peiffer Rosca Wolf Alan Rosca James Booker E-mail: arosca@prwlegal.com jbooker@prwlegal.com Tel: 888-998-0520 216-589-9280 - or - Goldman Scarlato & Penny Paul Scarlato E-mail: scarlato@lawgsp.com Phone: 888-872-6975 484-342-0700 CIBER INC: Amends Liquidation Plan, Hearing Set for Nov. 15 ----------------------------------------------------------- BankruptcyData.com reported that Ciber Inc. filed with the U.S. Bankruptcy Court an Amended Chapter 11 Plan of Liquidation and related Disclosure Statement. According to the Disclosure Statement, "The Plan provides that, except to the extent that a Holder of an Allowed Claim in Class 3 agrees to a less favorable treatment of its Allowed Claim, in full and final satisfaction, settlement, and release of and in exchange for each Allowed Claim in Class 3, each such Holder shall receive its Pro Rata share of Cash in the General Unsecured Claims Reserve. However, each Holder of an Allowed Class 3 Claim that votes to accept the Plan may make the Class 3 Cash-Out Election on such Holder's Class 3 Ballot or upon allowance of such Class 3 Claim. A Holder of an Allowed Class 3 Claim that makes the Class 3 Cash-Out Election will receive Cash in an amount equal to 35% of such Holder's Allowed Class 3 Claim on the Effective Date or as soon as reasonable practicable thereafter. As indicated in Article I.C hereof, it is estimated that Holders of Allowed Class 3 Claims will receive a recovery of between 37% and 100% of the face amount of their Allowed Claims. Although Holders of Allowed Claims in Class 3 that make the Class 3 Cash-Out Election will receive a lower recovery, they will receive their distributions before other Holders of Allowed Claims in Class 3. The Class 3 Cash-Out Election will also serve as a benefit to the Debtors' Estates, because it will result in additional Cash being available for distribution on account of: (a) Allowed Class 3 Claims for which a Class 3 Cash-Out Election is not made; and (b) Allowed Interests in Class 4 (to the extent that there is a recovery for Class 4)." The Court scheduled a November 15, 2017 hearing to consider the Plan, with objections due by November 1, 2017, according to the BankruptcyData.com. About CIBER Inc. CIBER, Inc. -- http://www.ciber.com/-- is a global information technology consulting, services and outsourcing company. CIBER, Inc., and two other affiliates sought bankruptcy protection on April 9, 2017 (Bankr. D. Del. Lead Case No. 17-10772). The petition was signed by Christian Mezger, chief financial officer. The Debtors disclosed total assets of $334.2 million and total liabilities of $171.9 million as of Sept. 30, 2016. The Hon. Brendan Linehan Shannon presides over the case. Morrison & Foerster LLP is the Debtors' lead bankruptcy counsel. Polsinelli, PC, serves as co-counsel while Saul Ewing LLP serves as local counsel. The Debtors also hired Houlihan Lokey as investment banker and financial advisor; Alvarez & Marsal North America, LLC, as restructuring advisor; and Prime Clerk LLC as noticing and claims agent. An official committee of unsecured creditors has been appointed in the Chapter 11 case. The committee hired Perkins Coie, LLP, as bankruptcy counsel; Shaw Fishman Glantz & Towbin LLC as co-counsel; and BDO Consulting as financial advisor. COOK INLET: Former Chair Awarded $15K in Administrative Expense --------------------------------------------------------------- Scott M. Boruff has filed an Application for Administrative Expense Claim in which he seeks to recover the sum of $252,657.53, representing the prorated portion of his contractual salary as executive chairman for Miller Energy Resources, Inc., for the four-month period between the filing of MER's chapter 11 petition and plan confirmation. Having considered the testimony of the witnesses and the documentary evidence presented at the evidentiary hearing held May 17, 2017, Judge Gary Spraker of the U.S. Bankruptcy Court for the District of Alaska awards Boruff the sum of $15,000 as an administrative expense. The court finds that Boruff has not proven the reasonable value of his post-petition services in excess of what other directors on the MER board were paid for their post-petition services. Boruff has established that he is due $252,657.53 under his employment contract with MER for four post-petition months' salary that remains unpaid. MER does not deny the salary is owed to Boruff but contends that because it rejected Boruff's employment contract the post-petition salary is part of his general, unsecured claim entitled to pro-rata distribution with the other allowed unsecured claims. Boruff argues that his post-petition salary is entitled to priority as an administrative expense which must be paid in full under the confirmed plan. Boruff calculated his claim by simply prorating his contractual annual salary rate of $795,000 from the date the petition was filed to the date of plan confirmation, a period of roughly four months. The court finds that MER has rebutted any presumption that the contract establishes the reasonable value of Boruff's post-petition services. Boruff has failed to establish that the services he provided post-petition had a reasonable value of $252,657.53. His efforts to find potential buyers for MER's assets were ill-defined, not productive, and duplicated those of SGS, who had been retained by MER to perform the same function but on a much broader scale. Thus, Boruff will only be awarded an administrative expense claim of $15,000 for his post-petition services as a member of MER's board of directors and its Restructuring Committee. The bankruptcy case is In re: COOK INLET ENERGY, LLC, et. al., Chapter 11, Debtors, Case No. A15-00236-GS (Bankr. D. Alaska). A full-text copy of Judge Spraker's Memorandum dated Sept. 13, 2017, is available at https://is.gd/eFqoyu from Leagle.com. Cook Inlet Energy LLC, Debtor, represented by David H. Bundy, David H. Bundy, PC, Timothy A. Davidson, II – taddavidson@andrewskurth.com -- Andrews Kurth LLP, Ashley L. Harper – ashleyharper@andewskurth.com -- Andrews Kurth Kenyon LLP, Patrick Hunnius, DLA Piper LLP, Michael Jungreis -- michaeljungreis@dwt.com -- Reeves Amodio, LLC Jonathan W. Katchen – jwkatchen@hollandhart.com -- Holland & Hart LLP, Kyle W. Parker – kwparker@hollandhart.com -- CROWELL & MORING LLP, Joseph P. Rovira – josephrovira@andrewskurth.com -- Andrews Kurth LLP, David A. Zdunkewicz – davidzdunkewicz@andrewskurth.com -- Andrews Kurth LLP. Baker Hughes Oilfield Operations, Inc., Petitioning Creditor, represented by Erik LeRoy, Steven J. Shamburek, Law Office of Steven J. Shamburek -- shambureklaw@gci.net -- William Sudela -- wsudela@cjmlaw.com -- Crady, Jewett & McCulley, LLP. National Oilwell Varco, L.P., Petitioning Creditor, represented by Kari B. Coniglio -- kbconiglio@vorys.com -- Vorys, Sater, Seymour and Pease LLP, Thomas H. Grace -- thgrace@vorys.com -- Vorys, Sater, Seymour and Pease LLP, John J. Sparacino -- jjsparacino@vorys.com -- Vorys, Sater, Seymour and Pease LLP. Office of the U.S. Trustee, U.S. Trustee, represented by Kathryn Perkins -- kathryn.e.perkins@usdoj.gov -- DOJ-Ust. About Miller Energy Resources Miller Energy Resources, Inc. -- http://www.millerenergyresources.com/-- is an oil and natural gas production company focused on Alaska. The Company has a substantial acreage, reserve, and resource position in the State, significant midstream and rig infrastructure to support production, and 100% working interest in and operatorship of most of its assets. Miller Energy Resources and 10 of its affiliates filed Chapter 11 bankruptcy petitions (Bank. D. Alaska Lead Case No. 15-00236) on Oct. 1, 2015. Carl F. Giesler, Jr., the CEO, signed the petitions. Judge Gary Spraker is assigned to the cases. The Debtors disclosed total assets of $392,559,000 and total debts of $336,910,000 as of Jan. 31, 2015. The Debtors have engaged Andrews Kurth LLP as counsel, David H. Bundy P.C., as local counsel, Seaport Global Securities as financial advisor, and Prime Clerk as claims and noticing agent. On Aug. 6, 2015, Cook Inlet, a wholly-owned by MER, became the subject of an involuntary Chapter 11 case filed by four creditors asserting to have an aggregate claim of $2.8 million. The petitioning creditors were Baker Hughes Oilfield, M-I LLC, Schlumberger Tech. Corp, and Baker Petrolite, LLC. Judge Spraker granted an order for relief under Chapter 11 of the Bankruptcy Code on Oct. 2, 2015. On Oct. 16, 2015, the U.S. Trustee formed an official committee of unsecured creditors. The Committee tapped Snow Spence Green LLP as counsel and Erik LeRoy, P.C, as local counsel. The members of the Committee are: (i) Cruz Construction Inc. (ii) Baker Hughes Oilfield Operations, Inc. (iii) Cudd Pressure Control, Inc. (iv) Exxon Mobil Corporation; (v) Inlet Drilling Alaska, Inc. (vi) National Oilwell Varco LP and (vii) Schlumberger Technology Corporation. On Oct. 30, 2015, each of the Debtors filed its Statement of Financial Affairs and Schedules of Assets and Liabilities, subject to permitted amendments from time to time. Cook Inlet disclosed $180 million in assets and $212 million in liabilities in its schedules. CORE COMMUNICATIONS: Plan Filing Period Extended Until Nov. 28 -------------------------------------------------------------- The Hon. S. Martin Teel, Jr. of the U.S. Bankruptcy Court for the District of Columbia extended the exclusive periods for Core Communications Inc. to file and solicit acceptances for a Chapter 11 plan to November 28, 2017, and January 29, 2018, respectively. The Troubled Company Reporter has previously reported that the Debtor sought a 90-days extension of the exclusive periods, explaining that it just recently filed its second monthly operating report, which reflected positive cash flow for June. The Debtor told the Court that the Debtor expects its future months to reflect positive cash flow with which it could fund a plan of reorganization. However, before filing its plan of reorganization along with cash flow projections, the Debtor said it still needs to see the results of operations for a few more months, both in terms of the increase in the OSA business and the impact of the continuing ICC transition to bill-and-keep. The Debtor further said it has diligently acted to rid itself of burdensome contracts and leases, and complied with its administrative duties -- not only by filing monthly operating reports -- but also by providing information to the Office of the U.S. Trustee. In addition, the Debtor has responded to numerous requests for information from the Office of the U.S. Trustee by providing documents and explanatory information throughout the case. About Core Communications Core Communications -- http://www.coretel.net-- provides Carriers, ISPs and ASPs with tailored telecommunications services, leveraging voice and data convergence. Core Communications Inc., based in Annapolis, Maryland, filed a Chapter 11 petition (Bankr. D.D.C. Case No. 17-00258) on May 2, 2017. The Hon. S. Martin Teel, Jr. presides over the case. Gregory P. Johnson, Esq., at Offit Kurman, P.A., serves as bankruptcy counsel. In its petition, the Debtor estimated $0 to $50,000 in assets and $1 million to $10 million in liabilities. The petition was signed by Christopher Van de Verg, general counsel. COTT CORP: Egan-Jones Hikes Sr. Unsecured Debt Ratings to B+ ------------------------------------------------------------ Egan-Jones Ratings Company, on July 25, 2017, raised the senior unsecured ratings on debt issued by Cott Corp. to B+ from B. The Cott Corporation is a supplier of private label carbonated soft drinks distributing to Canada, the United States, Mexico, the United Kingdom, and Europe. COUER MINING: Egan-Jones Hikes Sr. Unsec. Debt Ratings to BB- ------------------------------------------------------------- Egan-Jones Ratings Company, on July 18, 2017, raised the senior unsecured ratings on debt issued by Coeur Mining Inc. to BB- from B+. Coeur Mining, Inc. is a gold and silver producer. CROSSROADS SYSTEMS: Court Approves Disclosures & Confirms Plan -------------------------------------------------------------- BankruptcyData.com reported that the U.S. Bankruptcy Court approved Crossroads Systems' Disclosure Statement and concurrently issued an order confirming its Plan of Reorganization, with technical modifications. According to documents filed with the Court, "The Prepackaged Plan effectuates the terms of an agreement with 210/CRDS Investment ('210'), that will (i) provide the Debtor with an equity investment of $4 million and additional financing of $10 million which will allow the Debtor to monetize its patents, make profitable acquisitions, run the Debtor's business and fund necessary capital expenditures all to maximize shareholder return; (ii) retire all issued and outstanding preferred stock; (iii) pay all Administrative, Secured, Priority, General Unsecured, and Subordinated Claims in full; and (iv) allow common shareholders to retain their Interests. Subject to the terms and conditions of the Plan and related restructuring support agreement with 210/CRDS Investment, 210/CRDS Investment will invest $4 million cash in Crossroads Systems in exchange for shares of the reorganized company's common stock representing approximately 49.49% of the common stock of the reorganized company. The Plan provides for the payment of all creditor claims in full, for holders of Preferred Shares to receive their pro rata share of $2,672,233.78 in cash plus 8% of the common stock of the reorganized company, and for holders of common stock to exchange their existing shares of common stock for an equivalent number of new shares of the common stock of the reorganized company, which shares would constitute approximately 42.51% of the outstanding share of the common stock of the reorganized company." The Debtors also filed a notice of amendments to the Plan Supplement filed on September 11, 2017. About Crossroads Systems Crossroads Systems, Inc., sought protection under Chapter 11 of the Bankruptcy Code (Bankr. W.D. Tex. Case No. 17-51926) on Aug. 13, 2017. Jennifer Crane, chief financial officer, signed the petition. At the time of the filing, the Debtor estimated assets of less than $500,000 and liabilities of less than $50,000. Judge Ronald B. King presides over the case. Eric Terry Law, PLLC, serves as bankruptcy counsel to the Debtor. CRR INC: Court Denies Approval of Plan Outline ---------------------------------------------- For reasons stated at the hearing, Hon. Thomas J. Catliota of the U.S. Bankruptcy Court for the District of Maryland has denied approval of CRR, INC.'s disclosure statement referring to the Debtor's plan of reorganization. Headquartered in Silver Spring, Maryland, CRR, INC., a Maryland Corporation filed for Chapter 11 bankruptcy protection (Bankr. D. Md. Case No. 17-12433) on Feb. 23, 2017, estimating its assets at between $100,001 and $500,000 and its liabilities at between $500,001 and $1 million. Richard Whalen Lawlor, Esq., at Richard W. Lawlor, P.A., serves as the Debtor's bankruptcy counsel. The Office of the U.S. Trustee disclosed in a court filing that no official committee of unsecured creditors has been appointed in the Chapter 11 case of CRR, INC. CUSTOM FABRICATION & TANKS: Chapter 727 Bar Date Set for Jan. 5 --------------------------------------------------------------- Custom Fabrication & Tanks, LLC on Sept. 7, 2017, filed a petition commencing an Assignment for the Benefit of Creditors proceeding, pursuant to Chapter 727, Florida Statutes, to Mark C. Healy of Michael Moecker & Associates, Inc., as the Assignee. Custom Fabrication has its principal place of business at 569 Edgewood Avenue, South, Jacksonville, Florida 32205. Pursuant to Section 727.105, Florida Statutes, no proceeding may be commenced against the Assignee except as provided in Chapter 727 and except in the case of a secured creditor enforcing its rights and collateral under Chapter 679, there shall be no levy, execution, attachment, or the like in the respect of any judgment against assets of the estate, other than real property, in the possession, custody, or control of the Assignee. To receive any dividend in this proceeding, parties-in-interest must file a proof of claim on or before January 5, 2018, with the Assignee: Mark C. Healy Michael Moecker & Associates 1883 Marina Mile Boulevard, Suite 106 Fort Lauderdale, FL 33315 The Chapter 727 proceeding is, CUSTOM FABRICATION & TANKS, LLC, Assignor, v. MARK HEALY, Assignee, Case No. 16-2017-CA-005711, pending in the Circuit Court, Fourth Judicial Circuit, Duval County, Florida. CVR REFINING: Egan-Jones Downgrades Sr. Unsecured Ratings to BB+ ---------------------------------------------------------------- Egan-Jones Ratings Company, on July 17, 2017, lowered the senior unsecured ratings on debt issued by CVR Refining LP to BB+ from BBB-. CVR Refining LP is an independent downstream energy limited partnership with refining and related logistics assets that operates in the mid-continent region. The Company is a petroleum refiner that owns refineries in the Group 3 of the PADD II region of the United States. DEKALB MEDICAL CENTER: Fitch Cuts 2010 Revenue Certs Rating to BB ----------------------------------------------------------------- Fitch Ratings has downgraded the following bonds issued by the DeKalb County Hospital Authority (GA) on behalf of DeKalb Medical Center (DeKalb) to 'BB' from 'BBB-'. The ratings have been removed from Rating Watch Negative. -- $177.6 million revenue anticipation certificates, series 2010. The Rating Outlook is Negative. SECURITY The bonds are secured by a gross revenue pledge, a leasehold mortgage, and a fully-funded debt service reserve. KEY RATING DRIVERS DETERIORATING FINANCIAL PROFILE: The downgrade to 'BB' from 'BBB-' is driven by DeKalb's fifth consecutive year of operating EBITDA margin below 3% (average margin is below 2.5% for this period). The low cash flow generated covered debt at just above the 1.1x covenant for the obligated group in fiscal 2016 and 2017, and has proven insufficient to maintain cash balances even with the medical center's deferment of strategic capital projects in recent years. DECLINING CASH: The downgrade also reflects the decline of unrestricted cash and investments in fiscal 2017 from $162.8 million and 127 days cash on hand (DCOH) to less than 100 DCOH in fiscal 2017. DeKalb has not yet released its fiscal 2017 audit although it is expected to be released within the 120-day required disclosure period. CHALLENGING MARKET AND PAYOR MIX: Atlanta is a highly competitive healthcare market that has seen some recent consolidation. The presence of other large providers in Atlanta limits DeKalb's reach to a narrower primary service area. DeKalb is further challenged by decreasing market share and a payor mix that derives 17% of its gross revenue from Medicaid and approximately 10% from self-pay. REVENUE CYCLE and LABOR COSTS PRESSURE MARGINS: Fiscal 2015 (fiscal year ends in June) and fiscal 2016 were both affected by negative adjustments from systemic and mathematical errors found in the valuation of its patient accounts receivable. Although management has made several changes to process, operations, staff and leadership, residual problems continue to affect DeKalb's revenue cycle efficiency. DeKalb's financial results have also been negatively affected by the high costs related to agency nurses and contract labor, which was a high $16.6 million in fiscal 2017. RATING SENSITIVITIES OPERATING PERFORMANCE STABILIZATION: Additional rating pressure is possible if DeKalb Medical Center does not reverse its current trend of negative profitability. Continued weak operating EBITDA, further liquidity decline or a covenant breach may trigger further rating downgrades. Fitch believes positive rating momentum is not likely in the near term, although that may change in the long-term if DeKalb is successful in merging or aligning with a larger strategic partner; a search that it began earlier in 2017. DELL TECHNOLOGIES: Fitch Corrects September 19 Release ------------------------------------------------------ Fitch Ratings issued a correction of a release on Dell Technologies published on Sept. 19, 2017. It corrects the proposed margin reduction of the credit facility repricing to 50-bp from 25-bp and gross debt repaid since the EMC Corp. (EMC) merger close to $9.5 billion from $9 billion. The revised release is as follows: Fitch Ratings believes the ratings for Dell Technologies Inc., including the 'BB+' Long-Term Issuer Default Rating (IDR) and Stable Outlook, will be unaffected by the company's repricing of certain of its outstanding term loans and revolving credit facility (RCF). Dell is proposing a 50-bp margin reduction on up to $3.78 billion of replacement Term Loan A-2 due Sept. 7, 2021, $1.80 billion of replacement Term Loan A-3 due Dec. 31, 2018, and $3.15 billion of replacement RCF expiring Sept. 7, 2021. This should result in more than $25 million of annual interest expense savings. All other terms and conditions of the replacement loans are unchanged. Fitch currently rates $53 billion of total debt, including the undrawn $3.15 billion RCF, Dell's share of VMware Inc.'s (VMware) recent $4 billion senior notes offering net of the repayment of $1.23 billion of inter-company debt, and Dell's repayment of the $1.5 billion bridge loan associated with the VMware inter-company loan. The ratings and Stable Outlook reflect: FCF Debt Reduction Priority: Fitch expects Dell will continue to prioritize debt reduction (other than debt related to the financing business and VMware) and the company has repaid roughly $9.5 billion of gross debt since closing the EMC Corp. acquisition a year ago. VMware's $4 billion senior notes issuance on Aug. 14, 2017 was modestly leveraging for Dell on a consolidated basis, although Dell used proceeds from VMware's repayment of $1.23 billion of legacy inter-company notes, along with cash on hand, to prepay the associated $1.5 billion mirror bridge loan. Dell has more than $3 billion of legacy senior notes due in the first half of fiscal 2019 and, in conjunction with term loan amortization and prepayments with FCF or net proceeds from incremental asset sales, core leverage (total debt/operating EBITDA, excluding debt and profitability related to Dell Financial Services) should approach 4x exiting fiscal 2018 and 3.5x exiting fiscal 2019. Share-Gains Driven Revenue Growth: Fitch expects low-single-digit overall intermediate-term revenue growth, driven in large part by continued share gains amidst challenging demand environments and revenue synergies from the EMC acquisition. Fitch expects strong operating performance in the Client Solutions Group (CSG) segment from continued unit and revenue share consolidation by the top 3 personal computer (PC) providers, as well as higher peripherals and service attach rates. While worldwide PC industry units grew year-over-year in the first calendar quarter of 2017 for the first time since 2012, Fitch still expects low-single-digit unit declines for all of 2017. Fitch also expects Dell to gain share in enterprise servers given the company's recent new product-set launch, despite tepid enterprise spending as customer focus IT investments on software-defined, hyper-converged and hybrid cloud. Mixed ISG Performance: Despite solid performance in industry-standard servers, Fitch expects overall performance from Dell's Infrastructure Solutions Group (ISG) will remain mixed from uneven buying patterns by large cloud server providers (CSP) and negative revenue trends in mid-range legacy storage technologies more than offsetting robust adoption of new storage solutions. Fitch expects CSPs white-boxing hardware will also remain a headwind in ISG. Rapid growth in all flash arrays (AFA), hyper-converged, and software-defined solutions are more than half of Dell's storage business but remain insufficient to offset negative demand trends for traditional and hybrid solutions over at least the near term, despite Dell's efforts to increase sales capacity for mid-range storage solutions and strengthen the company's storage positions in fiscal 2018. Hybrid Cloud Drives VMware: VMware should continue its strong operating performance, driven by robust adoption of the company's networking, hybrid cloud and software-as-a-service (SaaS) offerings. Fitch expects VMware will grow by mid- to high-single digits overall and double digits in hybrid and SaaS, leveraging the company's large and diversified installed base of virtualization and management customers. VMware's $1 billion of cross-selling opportunities with Dell in the current fiscal (increasing over time), given historically low penetration rates, should also boost organic revenue. Solid operating EBITDA growth at VMware should benefit Dell's credit protection measures, given Fitch credits Dell with 81.4% of VMware's operating results. However, Fitch's rating case does not assume dividends or incremental inter-company loans to Dell, although Fitch believes the absence of restrictions on restricted payments and inter-company loans in VMware's senior unsecured notes indenture provides Dell with mechanisms to access VMware's cash. At the same time, Fitch recognizes the leakage resulting from dividends on the VMware Class A common stock may reduce its likelihood. Profit Expansion Headwinds: Fitch expects operating EBITDA growth and margin expansion from Dell's $2 billion of acquisition-related annual cost synergies, which Dell should achieve on a run rate basis in fiscal 2018. However, elevated NAND and DRAM prices due to supply shortages will be at least a near-term headwind. Infrastructure Solutions Group segment margins were down 60bps year-over-year in the first fiscal quarter ended Feb. 3, 2017 due to higher commodity prices, which Fitch expects to crimp margin expansion in fiscal 2018 due to challenges raising prices. As a result, Fitch now expects operating EBITDA at just over $10 billion for fiscal 2018 and more than $11 billion for fiscal 2019, versus prior expectations for operating EBITDA approaching $12 billion in fiscal 2019. Operating EBITDA margins expand slightly in fiscal 2018 but exceed 13% beyond the near term. Fitch believes Dell's liquidity was adequate as of Aug. 4, 2017, and consisted of: -- $11.2 billion of cash, cash equivalents and short-term investments, the majority of which was offshore and $3.6 billion of which was attributable to VMware (prior to the senior notes issuance). -- $3.1 billion of availability under the $3.2 billion RCF expiring 2021. Fitch's expectations for $4 billion of normalized FCF also supports liquidity, as does Dell's moderate to strong parent-subsidiary linkage with VMware, which provide contingent liquidity. DOLPHIN ENTERTAINMENT: Effects Reverse Common Stock Split --------------------------------------------------------- Dolphin Entertainment, Inc., filed with the Florida Department of State Articles of Amendment to the Company's Amended and Restated Articles of Incorporation to effectuate a reverse stock split of the Company's issued and outstanding common stock, par value $0.015 per share, on a two old for one new basis, providing that the Reverse Stock Split would become effective under Florida law on Sept. 14, 2017. Immediately after the Reverse Stock Split the number of authorized shares of Common Stock was reduced from 400,000,000 shares to 200,000,000. As a result, each shareholder's percentage ownership interest in the Company and proportional voting power remained unchanged. Any fractional shares resulting from the Reverse Stock Split were rounded up to the nearest whole share of Common Stock. Shareholder approval of the Reverse Stock Split was not required under Florida law, as the rights or preferences of the Company's shareholders were not adversely affected and the percentage of authorized shares remaining unissued after the Reverse Stock Split remained unchanged. About Dolphin Entertainment Headquartered in Coral Gables, Florida, Dolphin Entertainment, Inc., formerly Dolphin Digital Media, Inc., is a producer of digital programming for online consumption and is committed to delivering premium, best-in-class entertainment and securing premiere distribution partners to maximize audience reach and commercial advertising potential. On March 7, 2016, the Company completed its merger with Dolphin Films, Inc., an entity under common control. Dolphin Films, Inc. is a motion picture studio focused on storytelling on a global scale for young, always-connected audiences. On March 30, 2017, the Company acquired 42West, LLC, a Delaware limited liability company. 42West is an entertainment public relations agency offering talent publicity, strategic communications and entertainment content marketing. Dolphin also currently operates online kids clubs, however it intends to discontinue the online kids clubs at the end of 2017 to dedicate its time and resources to the entertainment publicity business and the production of feature films and digital content. The Company has a net loss of $1,558,185 for the three months ended June 30, 2017 and net income of $3,402,623 for the six months ended June 30, 2017. Although the Company had net income for the six months ended June 30, 2017, it was primarily due to a change in the fair value of the warrant liability. Furthermore, the Company has recorded accumulated deficit of $96,409,581 as of June 30, 2017. The Company has a working capital deficit of $18,481,195 and therefore does not have adequate capital to fund its obligations as they come due or to maintain or develop its operations. The Company is dependent upon funds from private investors and support of certain stockholders. If the Company is unable to obtain funding from these sources within the next 12 months, it could be forced to liquidate, according to the Form 10-Q report for the period ended June 30, 2017. Dolphin Digital reported a net loss of $37.19 million for the year ended Dec. 31, 2016, following a net loss of $8.83 million for the year ended Dec. 31, 2015. As of June 30, 2017, Dolphin Digital had $35.54 million in total assets, $38.56 million in total liabilities and a total stockholders' deficit of $3.02 million. BDO USA, LLP issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2016. The Company, according to BDO USA, has suffered recurring losses from operations and has a net capital deficiency that raise substantial doubt about its ability to continue as a going concern. DR. LUIS A. VINAS: Files Renewed 5th Cash Collateral Motion ----------------------------------------------------------- Dr. Luis A. Vinas, MD PA, filed a renewed fifth motion with the U.S. Bankruptcy Court for the Southern District of Florida seeking for authority to use the cash generated from its operations in order to continue the its business and preserve the value of the estate from Aug. 31, 2017 through Sept. 30, 2017. The proposed Budget reflects total estimated expenses of $114,985 covering the month of September 2017. The Debtor has $20,000 of expenses that must be made during the week of Sept. 4 to 9, 2017. This includes rent, insurance and utility payments. Thus, the Court has previously scheduled a hearing on this Motion for Sept. 6, 2017. However, due to the Debtor's untimely filing of a certificate of service, the Court denied the Motion without prejudice. Accordingly, the Debtor files this renewed motion. The Debtor believes that Bank United, N.A. may claim an interest in cash collateral, which the Debtor owes an outstanding amount of approximately $709,747. As adequate protection for the use of the cash collateral, the Debtor will, with the Court's permission, grant Bank United a continuing lien on cash and other receivables. In addition, by remaining a going concern, the Debtor anticipates collecting its existing accounts receivable and will be a benefit to the other creditors of the Debtor's estate. Finally, the Debtor claims that it will be able maintain operations and therefore generate new and future receivables all of which will provide adequate protection for the use of its cash collateral. A full-text copy of the Debtor's Motion, dated Sept. 5, 2017, is available at https://is.gd/PuNwTF A copy of the Debtor's Budget is available at https://is.gd/hIkKDn About Dr. Luis A. Vinas, MD PA Dr. Luis A. Vinas, MD PA, is engaged in the health care business and is 100% owned by Dr. Luis A. Vinas. Dr. Vinas is Board Certified by The American Board of Plastic Surgery. For over two decades, Dr. Vinas has been nationally recognized for his surgical techniques and minimally invasive surgical procedures. Dr. Vinas is a plastic surgeon specializing in cosmetic and reconstructive surgery including facelifts, tummy tucks, breast augmentation, single-stage breast reconstruction, liposuction, body contouring, and anti-aging procedures. Dr. Luis A. Vinas, MD PA, filed a Chapter 11 petition (Bankr. S.D. Fla. Case No. 17-14765) on April 17, 2017. Luis A Vinas, MD, president and 100% owner, signed the petition. The Debtor estimated assets of at least $50,000 and liabilities ranging from $1 million to $10 million. The case is assigned to Judge Paul G. Hyman, Jr. The Debtor engaged Nicholas B. Bangos, Esq., at Nicholas B. Bangos, P.A., as bankruptcy counsel. The Debtor tapped William G. Shofstall, PA, as special counsel. EAST WEST COPOLYMER: Hearing on Plan Outline Approval on Oct. 11 ---------------------------------------------------------------- The Hon. Douglas D. Dodd of the U.S. Bankruptcy Court for the Middle District of Louisiana has scheduled for Oct. 11, 2017, at 11:00 a.m. the hearing to consider the adequacy of East West Copolymer LLC's disclosure statement referring to the Debtor's plan of reorganization. Objections to the Disclosure Statement must be filed no later than eight days before the hearing. The Debtor and the Official Committee of Unsecured Creditors filed the Disclosure Statement on Sept. 6, 2017. Holders of Class 4 General Unsecured Claims will receive one or more distributions in accordance with Section 6.3 of the Plan. This class is impaired. Funds needed to make cash payments on the Effective Date under this Plan will come from trust assets. From and after the Effective Date, the Debtor will continue in existence solely for the purposes consistent with the terms of the Plan, which include, inter alia: (1) transferring property to liquidating trust; (2) liquidating trust assets; (3) enforcing and prosecuting claims, rights, interests and privileges of Liquidating Trust, including causes of action; (4) filing appropriate tax returns; and (5) assisting in the administration of the Plan and taking actions as are necessary to effectuate the Plan. Liquidating Trustee will serve as the representative of Debtor until the entry of a final decree in the case. Upon the Effective Date, Liquidating Trustee will enter into a Trust Agreement, which will assign ownership of property of the estate, inclusive of all tangible and intangible property, movable or immovable and causes of action to the Liquidating Trust, except Property which constitutes collateral upon which the MS Liens attach, unless Main Street and the Liquidating Trust reach an agreement authorizing the Liquidating Trust to liquidate the Property, on behalf of and for the benefit of Main Street. Dwayne M. Murray will thereafter be Liquidating Trustee, and trustee of Liquidating Trust, who will exercise control over Liquidating Trust in accordance with Trust Agreement. Upon completion of all of the duties of Liquidating Trustee, his discharge, and the closing of the case, any balance of Trustee's Reserved Amount will be transferred to Liquidating Trust. The Liquidating Trustee will be entitled to a commission for services in an amount equal to the greater of (a) 3% of all cash distributions from the Trust or (b) $30,000. A full-text copy of the Disclosure Statement is available at: http://bankrupt.com/misc/lamb17-10327-274.pdf About East West Copolymer LLC East West Copolymer, LLC, filed a Chapter 11 bankruptcy petition Bankr. M.D. La. Case No. 17-10327) on April 7, 2017. In its petition, the Debtor estimated $1 million to $10 million in assets and $10 million to $50 million in liabilities. The petition was signed by Gregory Nelson, manager. Stewart Robbins & Brown, LLC represents the Debtor as counsel. The Debtor hired Shared Management Resources, Ltd., as chief restructuring officer; Balmoral Advisors, LLC, as investment banker; and Alluvion Community Capital, LLC, as agent to secure reimbursement for overpayment of utilities. On May 4, 2017, the Office of the U.S. Trustee appointed three members to an official committee of unsecured creditors. The U.S. Trustee on June 23 appointed two more creditors to serve on the creditors' committee. The committee hired Taylor, Porter, Brooks & Phillips LLP as bankruptcy counsel. EMBASSY ENTERTAINMENT: Chapter 727 Claims Bar Date Set for Dec. 20 ------------------------------------------------------------------ Embassy Entertainment LLC filed on Aug. 22, 2017, a petition commencing an Assignment for the Benefit of Creditors proceeding, pursuant to Chapter 727, Florida Statutes, to Kenneth A. Welt. Pursuant to Florida Statute 727.105, no proceeding may be commenced against the Assignee except as provided in Chapter 727 and except in the case of a consensual lienholder enforcing its rights in personal property or real property collateral, there shall be no levy, execution, attachment, or the like in the respect of any judgment against assets of the estate, other than real property, in the possession, custody or control of the Assignee. To receive any dividend in this proceeding, parties-in-interest must file a proof of claim on or before Dec. 20, 2017, with the Assignee: Embassy, as Assignor, has its principal place of business at 600 Village Blvd., West Palm Beach, FL 33409, Florida. The Chapter 727 proceeding is, ASSIGNMENT FOR THE BENEFIT OF CREDITORS OF EMBASSY ENTERTAINMENT, LLC, a Florida limited liability company, Assignor To: KENNETH A. WELT, an individual, Assignee, Case No. 50-2017-CA-009487-XXXX-MB, in the Circuit Court of the 15th Judicial Circuit in and for Palm Beach County, Florida. The Assignee may be reached at: KENNETH A. WELT 8201 Peters Rd., Suite 1000 Plantation, Florida 33324 Mr. Welt is represented by: NATHAN G. MANCUSO, ESQ. MANCUSO LAW, P.A. Boca Raton Corporate Centre 7777 Glades Rd., Suite 100 Boca Raton, Florida 33434 Tel: 561-245-4705 Fax: 561-245-4601 E-mail: ngm@mancuso-law.com EVIO INC: Proposes to Reduce Authorized Shares to 110 Million ------------------------------------------------------------- The Board of Directors approved to amend EVIO, Inc.'s Amended and Restated Articles of Incorporation so as to reduce the authorized shares of the Company from 1,010,000,000 to 110,000,000, and to submit the Articles Amendment to the Corporation's stockholders for approval at the next Annual Shareholders Meeting or Special Meeting, whichever is to occur first. Upon stockholder approval, the chief executive officer will determine an effective date, which must be within 12 months of the meeting date, at such time the number of authorized common shares will be 100,000,000 and the authorized preferred shares will be 10,000,000. About EVIO, Inc. EVIO, Inc., formerly known as Signal Bay, Inc. -- http://www.eviolabs.com/-- is a life science company that provides accredited analytical testing services and scientific research to the regulated cannabis industry. The Company's EVIO Labs division provides state-mandated ancillary services that don't directly support the supply chain, but are in place to ensure the safety and quality of the nation's cannabis supply. At a special meeting of stockholders of Signal Bay held on Aug. 30, 2017, the stockholders of the Company approved, among other things, an amendment to the Company's Restated and Amended Articles of Incorporation to change the name of the Company to "EVIO, Inc." The name change took effect at 12:01 am Sept. 6, 2017. Signal Bay reported a net loss of $2.55 million for the year ended Sept. 30, 2016, following a net loss of $1.45 million for the year ended Sept. 30, 2015. As of June 30, 2017, Signal Bay had $3.97 million in total assets, $3.13 million in total liabilities and $838,396 in total equity. MaloneBailey, LLP, in Houston, Texas, issued a "going concern" qualification on the consolidated financial statements for the year ended Sept. 30, 2016, stating that the Company has negative working capital, recurring losses from operations and likely needs financing in order to meet its financial obligations. These conditions raise significant doubt about the Company's ability to continue as a going concern. FARWEST PUMP: Case Summary & 20 Largest Unsecured Creditors ----------------------------------------------------------- Debtor: Farwest Pump Company 3230 W. El Camino Del Cerro Tucson, AZ 85745 Business Description: Based in Tucson, Arizona, Farwest Pump Company is a small organization that provides well drilling services to all of the southwest United States. In addition, Farwest also offers a wide variety of related services including well video, sonar jet, municipal water systems, domestic water systems, water system efficiency testing, well test pumping and developing, electrical control systems, complete machine shop service, electric motor repairs, dewatering, environmental and geothermal services. Founded in 1982, Farwest is a licensed, bonded, and insured company with locations in Tucson, Willcox and Las Cruces. The Company is owned and operated by Clark and Channa Vaught. For additional information, please visit the Company's Web site at http://farwestwell.com Chapter 11 Petition Date: September 20, 2017 Case No.: 17-11112 Court: United States Bankruptcy Court District of Arizona (Tucson) Judge: Hon. Brenda Moody Whinery Debtor's Counsel: Kasey C. Nye, Esq. KASEY C. NYE, LAWYER, PLLC 1661 North Swan Road, Suite 238 Tucson, AZ 85712 Tel: 520-399-7368 Fax: 520-413-2147 E-mail: knye@kcnyelaw.com Estimated Assets: $2.51 million Estimated Liabilities: $1.85 million The petition was signed by Channa Vaught, president. A full-text copy of the petition, along with a list of 20 largest unsecured creditors, is available for free at http://bankrupt.com/misc/azb17-11112.pdf FIRST NBC: Gets Exclusivity in Plan Filing Thru Oct. 10 ------------------------------------------------------- BankruptcyData.com reported that the U.S. Bankruptcy Court approved First NBC Bank Holding's motion for enlargement of the exclusive period and time within which the Debtor's Plan may be accepted and confirmed. The order states, "It Is Ordered that, subject to the terms of the Stipulation, with respect to solely the Committee, the 120-day exclusive period within which the Debtor may file a Chapter 11 Plan is hereby extended until October 10, 2017; It Is Further Ordered that, with respect to all other parties in interest, the 120-day exclusive period within which the Debtor may file a Chapter 11 Plan is hereby extended until November 7, 2017; and, the 180-day exclusive period within which the Debtor may obtain acceptance of a Chapter 11 Plan is hereby extended until December 7, 2017." About First NBC Bank Holding First NBC Bank Holding Company -- http://www.firstnbcbank.com/-- is a bank holding company, headquartered in New Orleans, Louisiana, which offers a broad range of financial services through its wholly-owned banking subsidiary, First NBC Bank, a Louisiana state non-member bank. First NBC Bank's primary market is the New Orleans metropolitan area and the Florida panhandle. It serves its customers from its main office located in the Central Business District of New Orleans, 38 full service branch offices located throughout its market and a loan production office in Gulfport, Mississippi. First NBC Bank sought protection under Chapter 11 of the Bankruptcy Code (Bankr. E.D. La. Case No. 17-11213) on May 11, 2017. The petition was signed by Lawrence Blake Jones, chief restructuring officer. The Debtor disclosed $6 million in assets and $65 million in liabilities as of May 10, 2017. The bankruptcy filing follows the appointment of the Federal Deposit Insurance Corporation as receiver of First NBC Bank, the Debtor's wholly owned subsidiary and principal asset, on April 28, 2017, for which the Debtor has previously announced that it does not expect any recovery. The case is assigned to Judge Elizabeth W. Magner. Steffes, Vingiello & McKenzie, LLC, is the Debtor's bankruptcy counsel. Phelps Dunbar, LLP serves as local counsel, PricewaterhouseCoopers LLP serves as accountant. On May 18, 2017, the U.S. Trustee for Region 5 appointed an official committee of unsecured creditors. Jeffrey D. Sternklar LLC is the committee's legal counsel while Stewart Robbins & Brown, LLC is its legal counsel. * * * The Creditors Committee has filed a motion seeking the appointment of a Chapter 11 Trustee in the Debtor's case. FRESH ICE CREAM: Unsecureds to Get 4.15% Under Liquidation Plan --------------------------------------------------------------- The Fresh Ice Cream Company LLC filed a Chapter 11 plan of liquidation that proposes to pay creditors from the proceeds generated from the sale of most of its assets. The company had earlier sold its assets to DGI Ventures, Inc., for $1 million, of which $546,630.35 is being held in escrow to be distributed under the plan while $453,369.65 was paid to secured creditors at the closing of the sale on June 21. Under the proposed plan, creditors holding Class 3 general unsecured claims will receive a minimum 4.15% pro rata distribution or $331,105.35. The total amount of general unsecured claims is estimated at $8 million. Class 3 is impaired and general unsecured creditors are entitled to vote on the plan. Aside from the sale proceeds, the plan will also be funded with the company's cash on hand, accounts receivable, and causes of action. Fresh Ice Cream has also attempted to liquidate its remaining accounts and inventory excluded from the sale and anticipates it will generate an additional $50,000 after payment of its expenses, according to the company's disclosure statement filed on September 12 with the U.S. Bankruptcy Court for the Eastern District of New York. A copy of the disclosure statement is available for free at https://is.gd/zyVkYQ The hearing to consider approval of the disclosure statement is scheduled for October 17. Objections are dues by October 10. About The Fresh Ice Cream The Fresh Ice Cream Company LLC owns and operates a frozen dairy and non-dairy product distribution company under the well-known ice cream brand name Steve's Ice Cream. Fresh Ice Cream distributes high quality frozen dairy and non-dairy products to over 12 national retailers including Whole Foods throughout the Northeast and West Coast. Fresh Ice Cream sought protection under Chapter 11 of the Bankruptcy Code (Bankr. E.D.N.Y. Case No. 17-40716) on Feb. 17, 2017. David Stein, managing member, signed the petition. At the time of the filing, the Debtor disclosed $1.32 million in assets and $6.31 million in liabilities. The case is assigned to Judge Elizabeth S. Stong. Jonathan S. Pasternak, Esq., and Erica R. Aisner, Esq., at DelBello Donnellan Weingarten Wise & Wiederkehr, LLP, serve as the Debtor's bankruptcy counsel. On March 8, 2017, the U.S. trustee for Region 2 appointed an official committee of unsecured creditors. The committee retained Westerman Ball Ederer Miller Zucker & Sharfstein, LLP as counsel. GARCIA INVESTMENT: Foreclosure Sale of Anchorage Property on Nov. 7 ------------------------------------------------------------------- Fidelity Title Agency of Alaska, as Trustee, will sell the property at 420 and 440 W. 3rd Avenue, Anchorage, AK 99503, at a foreclosure auction set for November 7, 2017. Garcia Investment Group, LLC, the owner of the property, has been declared in default under a deed of trust it executed in favor of First National Bank Alaska. The amount due and owing by Garcia Investment to First National under a promissory note as of Aug. 7, 2017, is $660,376, which includes $641,050.10 in principal, $6,640 in interest from June 21, 2017, $3,791 in late charges, $40.21 fee balance, $3,267 escrow reserve, $2,217 for a Trustee's Sale Guarantee, $60.00 recording costs and $3,310 attorney fees. This balance will continue to accrue interest after Aug. 7 at a rate in accordance with the Note until the time of sale. Other charges, as allowed under the loan documents, may also accrue until the time of sale. The auction will be held Nov. 7 in the main lobby of the Boney Courthouse at 303 K Street, Anchorage, Alaska. The sale may be held with other sales as Trustee may conduct which shall begin at 10:00 a.m. and continue until complete. Payment must be made at the time of sale in cash or by cashier's check. The Beneficiary/Secured Party is not providing any financing for bids as part of the sale of Personal Property. Title to the Real Property and improvements will be conveyed by Trustee's Quitclaim Deed. Within ten days after confirming receipt of payment of the purchase price, the Beneficiary/Secured Party will provide to the buyer a Quitclaim Bill of Sale for the Personal Property. Both deeds are without warranties of title or condition of any nature or kind. Upon request, the Beneficiary/Secured Party also will provide to the buyer a transfer statement in accordance with AS 45.29.619. Upon request, a copy of the bill of sale and transfer statement forms will be provided to bidders before the sale. Possession and risk of loss of the goods will transfer immediately upon receipt of payment. It is the buyer's responsibility to remove, insure and otherwise deal with the goods after sale. If default has arisen by failure to make payments required under the Promissory Note and/or the deed of trust, the default may be cured and this sale terminated if (1) payment of the sum then in default, other than principal that would not then be due if default had not occurred, and attorneys and other foreclosure fees and costs actually incurred by the beneficiary and trustee due to the default is made at any time before the sale date stated in this notice or to which the sale is postponed, and (2) when notice of default has been recorded two or more times previously under the same deed of trust described and the default has been cured, the trustee does not elect to refuse payment and continue the sale. To determine the current amount required to be paid to cure the default and reinstate the payment terms of the Promissory Note, you may call (907) 777-3447 or send an e-mail to dsteger@fnbalaska.com Inspection of the Real Property and the Personal Property may also be arranged by contacting Ms. Steger at the telephone number above at least five business days before the sale. The terms and conditions of the sale of the personal property are also available by contacting Dianne Wamhoff at (907) 276-5152. The Trustee may be reached at: Leslie Plikat / COO Fidelity Title Agency of Alaska, Trustee 3150 C St #220 Anchorage, AK 99503 Tel: 907-277-6601 GARDEN OF EDEN: Exclusive Plan Filing Deadline Extended to Oct. 24 ------------------------------------------------------------------ The Hon. James L. Garrity, Jr., of the U.S. Bankruptcy Court for the Southern District of New York has extended, at the behest of Garden of Eden Enterprises, Inc., and its affiliates, the Debtors' exclusive right to file a plan of reorganization and solicit acceptances of the plan through and including Oct. 24 and Dec. 22, 2017, respectively. As reported by the Troubled Company Reporter on Aug. 24, 2017, the Debtors asked for the extension, saying that debtors Broadway Specialty Food, Inc., and Garden of Eden Gourmet Inc. need additional time to negotiate with their respective landlords in order to enable them to formulate a plan of reorganization. The Debtors have recently filed a motion to assume their respective leases which is currently scheduled to be heard by the Court on Sept. 12, 2017. Broadway and Garden believe that if they are able to finalize rent modifications and extensions of their respective lease terms and negotiate payment terms with respect to the prepetition cure amounts due and owing to their respective landlords, they will be in a position to negotiate and formulate a plan of reorganization with its secured creditors, along with the Official Committee of Unsecured Creditors. About Garden of Eden Enterprises Garden of Eden Enterprises, Inc., Broadway Specialty Food, Inc., Coskun Brothers Specialty, and Garden of Eden Gourmet Inc. filed Chapter 11 petitions (Bankr. S.D.N.Y. Case Nos. 16-12488, 16-12490, 16-12491, 16-12492, respectively) on Aug. 29, 2016. The petitions were signed by Mustafa Coskun, president. The cases are assigned to Judge James L. Garrity Jr. Doing business as Garden of Eden, the Debtors operate three upscale full-service specialty-food retail stores at leased premises in New York. Garden of Eden Enterprises is the parent operating company of the Debtors, and maintains its place of business at 720 Anderson Avenue, Cliffside Park, New Jersey 07010. Clifford A. Katz, Esq., and Scott K. Levine, Esq., of Platzer, Swergold, Levine, Goldberg, Katz & Jaslow, LLP, serve as counsel to the Debtors. The Debtors disclosed $8.05 million in assets and $8.29 million in liabilities. U.S. Trustee William K. Harrington on Sept. 15, 2016, appointed three creditors to serve on the official committee of unsecured creditors. The Committee retained Sullivan & Worcester LLP as counsel. GASTAR EXPLORATION: Amends Term Loan to Permit Assets Sales ----------------------------------------------------------- Gastar Exploration Inc., together with the other parties, executed an amendment No. 3 to the Third Amended and Restated Credit Agreement among the Company, as borrower, the guarantors party thereto, AF V Energy I Holdings, L.P., a fund managed indirectly by Ares Management LLC, as lender, and Wilmington Trust, National Association, as Administrative Agent. The Amendment No. 3 amended the Term Loan, to among other things, expressly provide that certain assignments of oil and gas properties made or to be made by the Company to Red Bluff Resources Operating, LLC, pursuant to a Purchase and Sale Agreement between the Company and Red Bluff dated Oct. 19, 2016, are permitted by the Term Loan and are not subject to the mandatory prepayment provisions applicable to "Asset Sales" under the Term Loan. A full-text copy of the Amended Credit Agreement is available for free at https://is.gd/4XbTaw About Gastar Exploration Houston, Texas-based Gastar Exploration Inc. -- http://www.gastar.com/-- is an independent energy company engaged in the exploration, development and production of oil, condensate, natural gas and natural gas liquids in the United States. Gastar's principal business activities include the identification, acquisition, and subsequent exploration and development of oil and natural gas properties with an emphasis on unconventional reserves, such as shale resource plays. Gastar reported a net loss attributable to common stockholders of $103.5 million on $58.25 million of total revenues for the year ended Dec. 31, 2016, compared to a net loss attributable to common stockholders of $474.0 million on $107.3 million of total revenues for the year ended Dec. 31, 2015. As of June 30, 2017, Gastar had $371.3 million in total assets, $380.4 million in total liabilities and a total stockholders' deficit of $9.06 million. * * * In March 2017, S&P Global Ratings affirmed its 'CCC-' corporate credit rating, with a negative outlook, on Gastar Exploration. Subsequently, S&P withdrew all its ratings on Gastar at the issuer's request. In April 2017, Moody's Investors Service withdrew all assigned ratings for Gastar Exploration, including the 'Caa3' Corporate Family Rating, following the elimination of all of its rated debt. GENERAL WIRELESS: Exclusive Plan Filing Deadline Moved to Dec. 4 ---------------------------------------------------------------- The Hon. Brendan L. Shannon of the U.S. Bankruptcy Court for the District of Delaware has extended, at the behest of General Wireless Operations Inc., dba Radioshack, and its affiliated debtors, the period during which the Debtors have the exclusive right to file a Chapter 11 plan through Dec. 4, 2017, and the period during which the Debtors have the exclusive right to solicit acceptances of such plan through Feb. 4, 2018. As reported by the Troubled Company Reporter on Sept. 11, 2017, the Debtors asked for the extension to allow them to seek confirmation of the Proposed Plan at the Combined Hearing, including any adjournments, without the Exclusive Periods expiring. The Debtors said they filed the proposed Joint Plan of Reorganization as well as the related proposed Disclosure Statement on Aug. 17, 2017. Also on Aug. 17, the Debtors filed a Plan Solicitation Procedures Motion. The Solicitation Procedures Motion was scheduled to be heard on Sept. 7 and if granted, the Debtors aver that they will promptly commence the solicitation process with respect to the Proposed Plan in advance of a combined disclosure statement and confirmation hearing on Oct. 25. About General Wireless Based in Fort Worth, Texas, General Wireless Operations Inc., doing business as RadioShack -- http://www.RadioShack.com/-- operates a chain of electronics stores. Its predecessor, RadioShack Corp., then with 4,000 locations, sought Chapter 11 protection (Bankr. D. Del. Case No. 15-10197) in February 2015 and announced plans to close underperforming stores. In March 2015, General Wireless, a Standard General affiliate, won court approval to purchase RadioShack Corp.'s assets, gaining ownership of around 1,700 RadioShack locations. Two years later, General Wireless commenced its own bankruptcy case, announcing plans to close 200 of 1,300 remaining stores. General Wireless Operations Inc., and its affiliates based in Fort Worth, Texas, filed a Chapter 11 petition (Bankr. D. Del. Lead Case No. 17-10506) on March 8, 2017. In its petition, General Wireless estimated $100 million to $500 million in both assets and liabilities. Bradford Tobin, SVP and general counsel, signed the petitions. The Debtors tapped Pepper Hamilton LLP as legal counsel; Loughlin Management Partners & Company, Inc., as financial advisor; and Prime Clerk, LLC, as claims and noticing agent. On March 17, 2017, the Office of the U.S. Trustee appointed an official committee of unsecured creditors. The committee selected Kelley Drye & Warren LLP as its lead counsel; Klehr Harrison Harvey Branzburg LLP as local counsel; Bartlit Beck Herman Palenchar & Scott LLP, as special counsel; and Berkeley Research Group LLC as financial advisor. GENON ENERGY: U.S. Trustee Opposes Noteholder Advisors Fee Motion ----------------------------------------------------------------- BankruptcyData.com reported that the U.S. Trustee assigned to the GenOn Energy case filed with the U.S. Bankruptcy Court an objection to the Debtors' motion for entry of an order approving marketing process procedures, notes offering procedures and related forms and authorizing the Debtors to pay reasonable documented fees and expenses of the noteholder advisors. The U.S. Trustee asserts, "Under the Motion, the Ad Hoc GenOn Notes Committee and the Ad Hoc GAG Notes Committee (collectively the 'Noteholder Groups') would reap the benefits of section 503(b)'s administrative status without subjecting themselves to its burdens. The Debtors argue that because the Noteholder Advisors will 'undertake significant analysis and efforts to support decision-making by the Debtors,' the Debtors need only show they used their business judgment under section 363 of the Bankruptcy Code to obtain approval of these fees and expenses, as well as their administrative status. However, the plain meaning of the Bankruptcy Code's text is clear and determinative. In addition, in this case, the Debtors are seeking reimbursement of Fees and Expenses incurred by non-statutory committees, which is specifically addressed in section 503(b) of the Bankruptcy Code. The payment provisions sought in the Motion conflict with the statutory standards and procedures for payment of administrative expenses because they authorize certain creditors to be paid administrative expenses without the necessity of filing an application and meeting their evidentiary burden for payment under section 503(b). The Court cannot disregard its duty under the Bankruptcy Code and pre-approve all the fees, no matter what they may be, and without a showing that the party made a substantial contribution. This case is yet unconfirmed. If the Motion were approved, but the deal between the noteholders, NRG, and the Debtors collapsed and the current Plan was not confirmed, the Noteholder Advisors could be paid without any showing that their clients made a substantial contribution to the case." About GenOn Energy GenOn Energy, Inc., is a wholesale power generation corporation with 15,394 megawatts in generating capacity, operating operate 32 power plants in eight states. GenOn is subsidiary of NRG Energy Inc., which is a competitive power company that produces, sells and delivers energy and energy services, primarily in major competitive power markets in the U.S. GenOn is the product of two mergers since 2010. First, on Dec. 3, 2010, two wholesale power generation companies -- RRI Energy, a company formerly known as Reliant Energy, and Mirant Corporation -- completed an all-stock, tax-free merger with Mirant becoming RRI's wholly-owned subsidiary. Following the merger, RRI took its current name: GenOn. NRG, through a wholly-owned subsidiary, and GenOn completed a stock-for-stock merger in a $6 billion deal, with GenOn continuing as the surviving company on December 14, 2012. NRG, as consideration for acquiring GenOn's entire equity, issued 0.1216 shares of NRG common stock for each outstanding share of GenOn. In structuring the merger, NRG "ring-fenced" GenOn's debt, leaving GenOn's creditors without recourse against NRG's assets in the event of GenOn's default. As of March 31, 2017, GenOn Energy had $4.81 billion in total assets, $4.51 billion in total liabilities and $304 million in total stockholders' equity. GenOn Energy, Inc. ("GenOn"), GenOn Americas Generation, LLC ("GAG") and 60 of their directly and indirectly-owned subsidiaries commenced the Chapter 11 cases in Houston, Texas (Bankr. S.D. Tex. Lead Case No. 17-33695) on June 14, 2017, to implement a restructuring plan negotiated with stakeholders prepetition. The Debtors' cases have been assigned to Judge David R. Jones. Kirkland & Ellis LLP is the Debtors' bankruptcy counsel. Zack A. Clement, PLLC, is the local counsel. Rothschild Inc. is the financial advisor and investment banker. McKinsey Recovery & Transformation Services U.S. is the restructuring advisor. Epiq Systems, Inc., is the claims and noticing agent. Credit Suisse Securities (USA) LLC serves as GenOn Energy's financial advisor and investment banker. Special Counsel to the GAG Steering Committee is Quinn Emanuel Urquhart & Sullivan, LLP. The Steering Committee of GAG Noteholders is comprised of Benefit Street Partners LLC, Brigade Capital Management, LP, Franklin Mutual Advisers, LLC, and Solus Alternative Asset Management LP, each on behalf of itself or certain affiliates, and/or accounts managed and/or advised by it or its affiliates. Counsel to the GenOn Steering Committee and the GAG Steering Committee are Keith H. Wofford, Esq., Stephen Moeller-Sally, Esq., and Marc B. Roitman, Esq., at Ropes & Gray LLP. Counsel for NRG Energy, Inc., are C. Luckey McDowell, Esq., and Ian E. Roberts, Esq., at Baker Botts L.L.P. GILLESPIE OFFICE: Plan Solicitation Period Moved to Dec. 11 ----------------------------------------------------------- The Hon. August B. Landis of the U.S. Bankruptcy Court for the District of Nevada extended the exclusivity period during which only Gillespie Office and Systems Furniture, Inc. may solicit acceptances to its plan of reorganization to December 11, 2017. As reported by the Troubled Company Reporter on September 5, 2017, the Debtor sought exclusivity extension, considering that the Court, during the hearing held on the confirmation of the Debtor's Plan, had taken the matter under submission after arguments from the Debtor and the objecting creditor. The Debtor filed on March 15, 2017, a disclosure statement to explain the plan of reorganization. The Court approved the Disclosure Statement on May 3, and scheduled a confirmation hearing for July 10. The Debtor said the requested extension would alleviate the potential for both estate and judicial resources to be spent needlessly, and ultimately increase the likelihood of the Debtor to successfully reorganize by avoiding the need to respond to a competing plan while the decision on confirmation is pending. About Gillespie Office and Systems Furniture Gillespie Office and Systems Furniture, Inc., does business as A&B Printing, located at 2908 South Highland Drive, Set. B, Las Vegas, Nevada. Gillespie Office has been providing printing and mailing services to customers in Las Vegas since 1979. Gillespie Office filed a Chapter 11 bankruptcy petition (Bankr. D. Nev. Case No. 16-11943) on April 11, 2016. The petition was signed by Kathleen L. Gillespie, president. The Debtor estimated assets and liabilities at $500,001 to $1 million at the time of the filing. Morris, Polich & Purdy serves as bankruptcy counsel to the Debtor in place of the law firm of Larson and Zirzow, effective as of June 17, 2016. Levy Law, LLC serves as special counsel while Holland & Hart serves as insurance defense litigation counsel to the Debtor. Serl, Keefer, Welter CPAs, LLP has been tapped as accountant. No request has been made for the appointment of a trustee or examiner, and no official committees have been appointed in this Chapter 11 case. GLOBAL APPLIANCE: Moody's Assigns B1 CFR; Outlook Stable -------------------------------------------------------- Moody's Investors Service assigned a B1 Corporate Family Rating (CFR) and B2-PD Probability of Default Rating to Global Appliance Inc. Global Appliance is the legal entity which is acquiring US home appliance brands SharkNinja in a leveraged buyout. Moody's also assigned a B1 rating to the company's proposed $905 million of senior secured first lien credit facilities. The rating outlook is stable. Global Appliance Inc. is a designer of electric appliances under the Shark and Ninja brands. Proceeds from the proposed debt financing, along with equity, will be used to finance the $1.6 billion acquisition of Global Appliance by Chinese investment firm Shanghai Lihong (Lihong) and private equity firm CDH Investments, and pay related fees and expenses. Moody's expects the transaction to close by the end of 2017. Lihong is a significant owner of Joyoung, a Chinese home appliance manufacturer. "Partnering with Lihong creates new growth opportunities for Global Appliance in China" stated Kevin Cassidy, Senior Credit Officer, at Moody's Investors Service. Issuer: Global Appliance Inc. Ratings assigned: Corporate Family Rating at B1; Probability of Default Rating at B2-PD; Senior Secured 1st Lien Revolving Credit Facility expiring 2022 at B1 (LGD 3); Senior Secured 1st Lien Term Loan A due 2022 at B1 (LGD 3); Senior Secured tst Lien Term Loan B due 2023 at B1 (LGD 3); The rating outlook is stable. RATINGS RATIONALE The B1 CFR reflects Global Appliance's high financial leverage, which Moody's estimates to be around 5 times debt/EBITDA, and limited product and geographic diversification. The rating also reflects the discretionary nature of the relatively expensive vacuums and blenders the company sells, and risks associated with being owned by a private equity firm. SharkNinja's solid market presence supports the rating, as does Global Appliance's size with revenue around $1.5 billion. Moody's expects debt/EBITDA to approach 4 times in fiscal 2019 (March year-end) through a combination of earnings growth and debt repayment with free cash flow. The B1 rating on the first lien credit facilities is the same as the B1 CFR as the facilities represent the preponderance of debt in the capital structure. The first lien credit facilities have upstream guarantees from operating subsidiaries. The stable outlook reflects Moody's expectation that debt to EBITDA will be maintained below 5 times and that there will be not be any shareholder distributions in the next few years. Ratings could be upgraded if the company can improve its product and geographic diversification and sustain debt to EBITDA below 4 times. Ratings could be downgraded if the company's operating performance or liquidity deteriorates for any reason or if debt to EBITDA remains above 5 times. Failure to successfully execute its China expansion strategy would pressure the rating. The principal methodology used in these ratings was that for the Consumer Durables Industry published in April 2017. Headquartered in Boston, Massachusetts, Global Appliance Inc. is a designer of electric appliances marketed under the Shark and Ninja brands primarily to consumers in the US. The company is principally owned by Chinese firm Lihong and private equity firm CDH Investments. Revenue approximates $1.4 billion. GOGO INTERMEDIATE: Moody's Rates Proposed $100MM Notes Add-on B2 ---------------------------------------------------------------- Moody's Investors Service has assigned a B2 rating to Gogo Intermediate Holdings LLC's proposed $100 million add-on to the 12.5% senior secured notes due 2022. The notes will also be co-issued at a second subsidiary, Gogo Finance Co. Inc. The net proceeds from this offering will be used to fund the commercial rollout of Gogo Inc.'s (Gogo) 2Ku next-generation technology solutions, and for working capital and general corporate purposes. Gogo's B3 corporate family rating (CFR), B3-PD probability of default rating, SGL-2 speculative grade liquidity rating and stable outlook remain unchanged. Assignments: Issuer: Gogo Intermediate Holdings LLC -- GTD Senior Secured Regular Bond/Debenture due 2022, Assigned B2 (LGD3) RATINGS RATIONALE Gogo's B3 CFR reflects its small scale, low margins, high leverage (12.4x Moody's adjusted for the 12 months ended June 30, 2017), and the expectation of negative free cash flow into 2019 as the company heavily invests in the rollout of in-flight connectivity technology to additional carriers outside the North American market, where it currently benefits from critical mass in the commercial aviation segment and a dominant position in business aviation. The rating is supported by this currently strong North American market position, long-term carrier contracts, cumbersome barriers to entry, a robust revenue growth profile driven by international expansion, sufficiently large cash balances to fund negative operating cash flow during the current growth phase, and a seasoned and proven management team. Gogo's 2Ku advanced global satellite delivery technology and improving air-to-ground technologies will help the company contract with and serve global carriers in new geographic markets, as well as address North American capacity constraints. With numerous competitors vying for differentiation and carrier share in a still evolving but growing market, Gogo's technology, compelling delivery platform, and backlog support new market growth and facilitate the company's continuing defense of its current business. Future factory installs of Gogo's hardware and software technology with major aircraft manufacturers will ease the complicated logistics associated with the initial outfitting of in-use aircraft, smoothing future growth and revenue opportunities. The new secured notes rank pari passu with Gogo's existing $590 million senior secured notes due 2022. The secured notes are guaranteed on a senior secured basis by Gogo Inc. and by each of Gogo Inc.'s existing and future domestic restricted subsidiaries (other than the co-issuers of the notes: Gogo Intermediate Holdings LLC and Gogo Finance Co. Inc.). The stable outlook reflects Moody's expectations that the company will continue to produce relatively healthy revenue growth and maintain adequate liquidity while leverage remains high as Gogo heavily invests during its growth phase. Given the expectation for high leverage and negative free cash flow, an upgrade is unlikely over the next 12 to 18 months. However, upward rating pressure would ensue if Gogo were to sustainably generate free cash flow and financial leverage approached 4x (Moody's adjusted). Downward rating pressure could develop if liquidity becomes strained, revenue growth stalls, or if the company is unable to migrate towards free cash flow generation and improve that free cash flow profile over time. Additionally, debt financed acquisitions and investments which result in a deterioration in cash flow or a material increase in leverage could result in a downgrade. The principal methodology used in this rating was Business and Consumer Service Industry published in October 2016. GOOD FIGHT: Plan Confirmation Hearing on Oct. 18 ------------------------------------------------ The Hon. John W. Kolwe of the U.S. Bankruptcy Court for the Western District of Louisiana has conditionally approved Good Fight of Faith Assembly, Inc.'s disclosure statement referring to the Debtor's Chapter 11 plan. A final hearing on the approval of the Disclosure Statement and confirmation of the Plan will be held on Oct. 18, 2017, at 9:30 a.m. Objections to the Disclosure Statement and Plan must be filed by Oct. 13, 2017. The last day for holders of claims and interests to accept or reject the Plan is Oct. 13. The last date for the filing of proofs of claim will be Oct. 18. As reported by the Troubled Company Reporter on Aug. 16, 2017, the Debtor filed with the Court a disclosure statement dated Aug. 2, 2017, referring to the Debtor's plan of reorganization dated Aug. 2, 2017. Payments and distributions under the Plan will be funded by future contributions by church members. About Good Fight of Faith Assembly Founded in 2001, Good Fight of Faith Assembly is a small organization in the religious organizations industry located in Alexandria, Louisiana. Good Fight of Faith Assembly, Inc., filed a Chapter 11 bankruptcy petition (Bankr. W.D. La. Case No. 16-81296) on Nov. 30, 2016, listing under $1 million in both assets and liabilities. The Debtor is represented by L. Laramie Henry, Esq., as counsel. The Debtor has approximately two full time employees and generates an estimated $53,713 in annual revenue at the time of the bankruptcy filing. GREER APPLIANCE: U.S. Trustee Unable to Appoint Committee --------------------------------------------------------- An official committee of unsecured creditors has not yet been appointed in the Chapter 11 case of Greer Appliance Warehouse, as of Sept. 19, according to a court docket. Headquartered in Greer, South Carolina, Greer Appliance Warehouse & Service, LLC, filed for Chapter 11 bankruptcy protection (Bankr. D.S.C. Case No. 17-04069) on Aug. 15, 2017, estimating its assets at up to $50,000 and its liabilities at between $100,001 and $500,000. Robert H. Cooper, Esq., at The Cooper Law Firm serves as the Debtor's bankruptcy counsel. HAMPSHIRE GROUP: Wants Plan Filing Deadline Moved to Oct. 20 ------------------------------------------------------------ BankruptcyData.com reported that Hampshire Group filed with the U.S. Bankruptcy Court a motion for an order extending the exclusive periods during which the Debtors may file a Chapter 11 plan and solicit acceptances thereof, through and including Oct. 20, 2017 and Dec. 20, 2017, respectively. In its fifth exclusivity extension motion, the Debtor explained that the solicitation motion originally sought a confirmation hearing date of Sept. 13, 2017, one week prior to the current expiration of the exclusive filing period under the fourth extension order. Under the Solicitation Procedures Order, the confirmation hearing date has now been scheduled for Sept. 27, 2017. The Debtor thus seek a brief 30-day extension of the Exclusive Periods to maintain the status quo in these cases through the anticipated effective date of the Plan and avoid the risk of any unnecessary distractions as the Plan Proponents seek to obtain confirmation of the Plan. If, as the Debtors anticipate, the Plan will be confirmed on or about Sept. 27, 2017, then on or about the Plan effective date, the Debtors intend to file a notice withdrawing this Motion. About Hampshire Group New York-based Hampshire Group, Limited (OTC Markets: HAMP) is a provider of fashion apparel across a broad range of product categories, channels of distribution and price points. As a holding company, the Company operates through its wholly-owned subsidiaries, Hampshire Brands, Inc. and Hampshire International, LLC. Hampshire Group, Limited and two affiliates -- Hampshire Brands and Hampshire International -- sought Chapter 11 bankruptcy protection (Bankr. D. Del. Case Nos. 16-12634 to 16-12636) on Nov. 23, 2016, to facilitate the orderly wind-down of their business operations. The petitions were signed by Paul Buxbaum, president and CEO. Hampshire Group disclosed $25.9 million in assets and $41.8 million in liabilities. Brands estimated under $50 million in both assets and debt. International estimated under $50,000 in assets and under $50 million in liabilities. Blank Rome LLP is the Debtors' counsel. William Drozdowski of GRL Capital Advisors LLC is the Debtors' chief financial officer. The U.S. Trustee for Region 3 has formed an official unsecured creditors committee in the case. Pachulski Stang Ziehl & Jones LLP serves as legal counsel and Gavin/Solmonese LLC as financial advisor to the Committee. * * * The Bankruptcy Court authorized Hampshire Group, Limited, to sell the James Campbell assets to The Fashion Exchange, LLC, pursuant to an asset purchase agreement dated Jan. 13, 2017. Klestadt Winters Jureller Southard & Stevens, LLP, served as legal advisor to the buyer. HARBOR BAR DOCKS: Taps Larimore Law Office as Legal Counsel ----------------------------------------------------------- Harbor Bar Docks Inc. and Harbor Bar, Inc. filed separate applications seeking approval from the U.S. Bankruptcy Court for the Western District of Wisconsin to hire legal counsel. The Debtors propose to employ Larimore Law Office LLC to give legal advice regarding their duties under the Bankruptcy Code and provide other legal services related to their Chapter 11 cases. The firm will charge an hourly fee of $185 for the services of its attorneys. Joel Larimore, Esq., disclosed in a court filing that he and his firm do not have connection with any creditor or "party-in-interest" in the Debtor's case. The firm can be reached through: Joel Larimore, Esq. Larimore Law Office 1561 Commerce Ct., Suite 215 River Falls, WI 54022 Phone: 715-629-7108 Email: joel.larimore@gmail.com About Harbor Bar Docks Incorporated Harbor Bar Docks Incorporated and Harbor Bar, Inc. sought protection under Chapter 11 of the Bankruptcy Code (Bankr. W.D. Wis. Case Nos. 17-10989 and 17-10990) on March 26, 2017. The petitions were signed by Bradley Smith, president of Harbor Bar Docks. At the time of the filing, both Debtors disclosed that they had estimated assets and liabilities of less than $1 million. HCA INC: Egan-Jones Assigns BB- Sr. Unsec. Debt Ratings ------------------------------------------------------- Egan-Jones Ratings Company, on July 26, 2017, assigned BB- senior unsecured ratings on debt issued by HCA Inc./Old. HCA Inc. of Delaware owns, manages, and operates hospitals. The Company offers freestanding surgery, emergency care facilities, diagnostic, and imaging centers. HHH CHOICES: Hearing on HHHW Plan Set for Oct. 31 ------------------------------------------------- The U.S. Bankruptcy Court for the Southern District of New York is set to hold a hearing on October 31 to consider approval of the Chapter 11 plan of liquidation jointly filed by Hebrew Hospital Home of Westchester, Inc. ("HHHW") and the official committee of unsecured creditors. The hearing will be held at 10:00 a.m. (prevailing Eastern Time), before Judge Michael E. Wiles. The court on September 12 approved the disclosure statement, allowing Hebrew Hospital to start soliciting votes from creditors. The order set an October 24 deadline for creditors to file their objections and an October 20 deadline to cast their votes accepting or rejecting the plan. About HHH Entities Three alleged creditors owed about $1.9 million submitted an involuntary Chapter 11 petition for HHH Choices Health Plan, LLC on May 4, 2015 (Bankr. S.D.N.Y. Case No. 15-11158) in Manhattan. The petitioners are The Royal Care, Inc., (allegedly owed $772,762), Amazing Home Care Services ($1,178,752), and InterGen Health LLC ($42,298), all claiming that they are owed by the Debtor for certain services rendered. They all tapped Marc A. Pergament, Esq., at Weinberg, Gross & Pergament, LLP, in Garden City, New York, as counsel. With the consent from the board of directors, HHH Choices filed a notice of consent to order for relief on June 1, 2015, and an order for relief was entered on June 22, 2015. HHH Choices was engaged in operating a managed long-term care program ("MLTCP"). HHH Choices, which essentially was a health insurance maintenance plan, sold its business in 2015. On Dec. 9, 2015, Hebrew Hospital Senior Housing, Inc., commenced a Chapter 11 case (Bankr. S.D.N.Y. Case No. 15-13264). HHSH is engaged in the sponsorship and operation of a 120-unit continuing care retirement community ("CCRC") with ancillary components consisting of; a 20 bed skilled nursing facility ("SNF"), which includes an adult day healthcare program ("ADHCP"), and a 10-bed enriched housing unit. These programs are commonly known as, Westchester Meadows and Fieldstone. On Jan. 8, 2016, Hebrew Hospital Home of Westchester, Inc. commenced a Chapter 11 Case (Case No. 16-10028). HHHW's predecessor, Hebrew Hospital Home, Inc. owned and operated a 480-bed skilled nursing facility located in the Bronx. In 1998, HHHW opened a new 160-bed facility situated at 61 Grasslands Road, Valhalla, New York. HHHW sold the Bronx SNF in 2007 and the Westchester SNF in mid-2015. HHHW no longer has any active business operations. However, it still has responsibilities to wind-up its affairs, including finishing any remaining billing and processing, filing reports with regulatory agencies and closing its books and records. The true-up process and final reconciliation with the purchasers of the Westchester SNF is incomplete. The Debtors sought and obtained an order directing joint administration of their cases under Case No. 15-11158. Judge Michael E. Wiles oversees the cases. Mary Frances Barrett is president of all of the Debtors. The Debtors tapped Harter Secrest & Emery LLP as counsel and Getzler Henrich & Associates LLC as financial advisor. The Office of the United States Trustee appointed five creditors of HHH Choices to serve on the official committee of unsecured creditors. The HHH Choices Committee tapped Farrell Fritz, P.C., as counsel. William K. Harrington, U.S. Trustee for Region 2, appointed five creditors of Hebrew Hospital Home of Westchester Inc., an affiliate of HHH Choices Health Plan LLC, to serve on the official committee of unsecured creditors. The Hebrew Hospital Committee tapped Duane Morris as counsel and Alston & Bird LLP as counsel. * * * Hebrew Hospital Home of Westchester, Inc., and the Official Committee of Unsecured Creditors of the Debtor filed a joint chapter 11 plan of liquidation on August 10, 2017. Official Committee of Unsecured Creditors of the HHH Choices Health Plan, LLC, filed a Chapter 11 plan of liquidation for HHH Choices dated Aug. 15, 2017. HIGHLAND ACQUISITION: Moody's Puts B2 CFR on Review for Upgrade --------------------------------------------------------------- Moody's Investors Service placed all ratings for Highland Acquisition Holdings, LLC on review for upgrade. Highland is the parent company of HealthSun. This follows the announcement that Anthem, Inc. (Baa2 stable) will acquire the company. Moody's expects the transaction to close by the end of 2017 and is subject to state and federal regulatory approvals. Moody's anticipates that it will withdraw all ratings on Highland once the company's debts are repaid at transaction close. Ratings placed on review that Moody's expects to withdraw at close: Highland Acquisition Holdings, LLC Corporate Family Rating at B2 Probability of Default Rating at B2-PD Senior secured first lien revolving credit facility expiring 2021 at B2 (LGD 3) Senior secured first lien term loan due 2023 at B2 (LGD 3) The outlook is on review. RATINGS RATIONALE The review for upgrade is based upon Moody's view that, should the acquisition by Highland be consummated, that Highland will become part of an enterprise with a stronger overall credit profile than if Highland remains a standalone entity. The review will focus on Anthem's treatment of Highland's debt following the close of the acquisition. Should Anthem decide not to guarantee any Highland debt remaining outstanding after the close, or not to provide separate financial statements for Highland, which would enable an independent credit evaluation post-acquisition, Moody's will likely withdraw the ratings on Highland. For more information, please refer to Moody's rating withdrawal policy on moodys.com. Excluding the contemplated acquisition by Anthem, Highland's B2 Corporate Family Rating reflects HealthSun's significant geographic concentration, reimbursement risk, moderately high financial leverage, and small size relative to other healthcare providers and HMO competitors. The rating is supported by the firm's solid operating margins and good cash flow generation, as well as its strong reputation that will drive continued growth in plan membership in its very localized Florida market. Should the transaction not be completed, Moody's expects that it would confirm the ratings. The principal methodology used in these ratings was Business and Consumer Service Industry published in October 2016. Based in Coconut Grove, Florida, HealthSun is an operator of medical clinics and a Health Maintenance Organization in two Florida counties. The company has nearly 40,000 Medicare Advantage members in the south Florida counties of Miami-Dade and Broward. The company operates HealthSun Health Plans, its own HMO, as well as clinics branded as WellMax and Pasteur that are exclusively for members of its HMO. The company's network extends to clinics operated by outside parties, which offer varying levels of exclusivity in serving plan members. Pro forma revenues are approximately $800 million. HIGHLAND ACQUISITION: S&P Puts 'BB-' CCR on Watch Positive ---------------------------------------------------------- S&P Global Ratings said it placed its 'BB-' long-term counterparty credit and senior secured debt ratings on Highland Acquisition Holdings LLC (HealthSun) on CreditWatch with positive implications. Anthem Inc. has announced that it has entered into an agreement to acquire Highland Acquisition Holdings LLC (HealthSun). The CreditWatch placement reflects HealthSun's anticipated acquisition by a higher-rated entity --Anthem Inc., which S&P believes will result in an upgrade of up to one three notches. The acquisition is expected to close in fourth-quarter 2017. S&P said, "We will continue to monitor HealthSun's operating performance and discuss HealthSun's capital structure with Anthem. Once the transaction is completed, we could raise the ratings by up to three notches depending on the amount of debt outstanding following the acquisition and our determination of HealthSun's strategic importance within Anthem's group of companies." HUDSON'S BAY: Egan-Jones Cuts Sr. Unsecured Ratings to B- --------------------------------------------------------- Egan-Jones Ratings Company, on July 18, 2017, lowered the senior unsecured ratings on debt issued by Hudson's Bay Co. to B- from B. EJR also lowered the commercial paper rating on the Company to C from B. Hudson's Bay Company offers a selection of branded merchandise in Canada and the United States. The Company operates department stores and other retail stores that offers kitchen and bed and bath/products. IGNITE RESTAURANT: Court Approves Disclosure Statement ------------------------------------------------------ BankruptcyData.com reported that the U.S. Bankruptcy Court approved Ignite Restaurant Group's Disclosure Statement related to its Amended Chapter 11 Plan. According to the Disclosure Statement, "The Plan is premised on the substantive consolidation of all of the Debtors with respect to the treatment of all Claims and Interests. The Plan shall serve as a request by the Debtors, in lieu of a separate motion, to the Bankruptcy Court, that it grant substantive consolidation with respect to the treatment of all Claims and Interests as follows: on the Effective Date, (a) all assets and liabilities of the Debtors will be merged or treated as though they were merged; (b) all guarantees of the Debtors of the obligations of any of Debtor and any joint and several liability of any of the Debtors shall be eliminated; (c) each and every Claim of a Debtor held against another Debtor shall be deemed released, cancelled and terminated; and (d) each and every Claim and Interest against any Debtor shall be deemed Filed against the consolidated Debtors and all Claims Filed against more than one Debtor for the same liability shall be deemed one Claim against any obligation of the consolidated Debtors. Substantive consolidation is appropriate here. Pursuant to the Settlement, the Lenders will be receiving all of the net proceeds of the sale, except for $900,000 to be distributed to general unsecured creditors. The cost of determining the appropriate distributions and disentangling intercompany claims, absent substantive consolidation, would be prohibitive." About Ignite Restaurant Ignite Restaurant Group, Inc., et al., operate two well-known restaurant brands, Joe's Crab Shack and Brick House Tavern + Tap that offer a variety of high-quality food and beverages in a distinctive, casual, high-energy atmosphere. They operate 130+ restaurants and have three international franchise locations, and employ about 8,400 employees. On June 6, 2017, Ignite Restaurant Group and its affiliates filed for bankruptcy in Texas (Bankr. S.D. Tex. Lead Case No. 17-33550). The petitions were signed by Jonathan Tibus, chief executive officer. The Hon. David R. Jones presides over the Debtors' cases. Ignite Restaurant Group and its affiliated debtors sought bankruptcy protection to facilitate a sale of its business to a private equity firm for $50 million in cash plus the assumption of certain liabilities. As of April 30, 2017, the Debtors reported $153.4 million in total assets and $197.4 million in total liabilities. The Debtors have employed King & Spalding LLP as legal counsel; Jonathan Tibus, managing director at Alvarez & Marsal North America, as their chief executive officer; Piper Jaffray & Co. as investment banker; Hilco Real Estate, LLC as real estate advisor; and Garden City Group as their claims and noticing agent. On June 21, 2017, a five-member panel was appointed as the official unsecured creditors committee in the Debtors' cases. The committee tapped Pachulski Stang Ziehl & Jones LLP as counsel, Cole Schotz P.C. as local counsel, and FTI Consulting, Inc., as financial advisor. IMAGEWARE SYSTEMS: Secures $11 Million in New Funding ----------------------------------------------------- ImageWare Systems, Inc., has completed an $11 million registered direct offering to certain accredited investors. ImageWare sold an aggregate of 11,000 shares of new Series A Preferred Stock at $1,000 per share for gross proceeds of $11 million. After accounting for previously advanced cash that was converted into the transaction, new proceeds are expected to be approximately $10.1 million. ImageWare intends to use the proceeds for general corporate purposes such as marketing, sales and working capital. The offering was conducted pursuant to the Company's shelf registration statement on Form S-3 (File No. 333-214124) previously filed with and subsequently declared effective by the Securities and Exchange Commission on April 28, 2017. A prospectus supplement and accompanying base prospectus relating to the offering was filed with the SEC and is available on the SEC's website at http://www.sec.gov. Concurrently with the registered direct offering, ImageWare expects to consolidate $20.6 million worth of shares of existing Series E, Series F and Series G preferred stock into the new class of Series A Preferred Stock. The only preferred shares expected to remain outstanding after the exchange is approximately 239,000 shares of Series B Preferred Stock. "This financing recognizes the strong progress we've made to commercialize our leading identity management solutions for the enterprise and consumer markets, as well as our significant prospects for growth in those areas," said Jim Miller, ImageWare's chairman and CEO. "Not only are we now in a better position to capitalize on the growing industry demand for biometric solutions, but we believe our bolstered balance sheet and operational momentum will enable us to further expand our partner agreements for our mobile and cloud-based products." Concurrent with the financing, ImageWare has appointed Robert Clutterbuck and Charlie Frischer to its board of directors. Mr. Clutterbuck is a significant ImageWare shareholder and the founder, managing director and portfolio manager at Clutterbuck Capital Management. He gained more than 30 years of investing experience at McDonald & Company Investments, Inc., advising affluent clients, professionals and corporate executives on investment management, financial planning, estate preservation and wealth transfer strategies. During his time at McDonald & Company, Mr. Clutterbuck held several senior management positions, including serving as chairman and chief executive partner of Key Capital Partners, and as CEO of McDonald Investments Inc. from 2000 to 2002. Currently, Mr. Clutterbuck serves as an independent director of Westmoreland Resources GP, LLC (NYSE: WMLP), a position he has held since Jan. 6, 2015. Mr. Clutterbuck holds a B.A. from Ohio Wesleyan University and an M.B.A from the University of Pennsylvania Wharton School of Business. Charlie Frischer currently works as a self-employed private investor, a role he has occupied since 2009. Previously, he served as general partner of LF Partners, LLC from 2009 to 2015 and as a principal at Zephyr Management, L.P. from 2005 to 2008. Prior to that, he served as a principal at Capri Capital, where he directed the firm's real estate acquisitions program from 1995 to 2000, and as senior vice president of Ericson Memorial Studios from 1993 to 1994. Mr. Frischer holds a B.A. from Cornell University. About ImageWare Systems ImageWare Systems, Inc., is a developer of mobile and cloud-based identity management solutions, providing biometric authentication solutions for the enterprise. The Company delivers next-generation biometrics as an interactive and scalable cloud-based solution. ImageWare brings together cloud and mobile technology to offer multi-factor authentication for smartphone users, for the enterprise, and across industries. ImageWare's products support multi-modal biometric authentication including, but not limited to, face, voice, fingerprint, iris, palm, and more. All the biometrics can be combined with or used as replacements for authentication and access control tools, including tokens, digital certificates, passwords, and PINS, to provide the ultimate level of assurance, accountability, and ease of use for corporate networks, web applications, mobile devices, and PC desktop environments. ImageWare is headquartered in San Diego, Calif., with offices in Portland, OR, Ottawa, Ontario, and Mexico City, Mexico. To learn more about ImageWare, visit http://iwsinc.com;follow the Company on Twitter, LinkedIn, YouTube and Facebook. ImageWare Systems reported a net loss available to common shareholders of $10.87 million on $3.81 million of revenues for the year ended Dec. 31, 2016, compared to a net loss available to common stockholders of $9.59 million on $4.76 million of revenues for the year ended Dec. 31, 2015. As of June 30, 2017, ImageWare had $4.25 million in total assets, $9.83 million in total liabilities and a total shareholders' deficit of $5.58 million. Mayer Hoffman McCann P.C., in San Diego, California, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2016, citing that the Company has incurred recurring operating losses and is dependent on additional financing to fund operations. These conditions raise substantial doubt about the Company's ability to continue as a going concern. J CREW GROUP: Signs Three-Year Contract With CAO ------------------------------------------------ J.Crew Group, Inc. announced that Lynda Markoe has been named chief administrative officer. Ms. Markoe, age 50, served as the Company's executive vice president, human resources & legal since 2015. In connection with her promotion, the Company entered into a letter agreement with her, dated Sept. 14, 2017, which sets forth new terms of compensation. The Letter Agreement has a three-year term and will automatically renew for successive one-year periods unless either party gives notice of its election not to renew. Pursuant to the Letter Agreement, Ms. Markoe's base salary is not less than $600,000 and she is eligible to earn a target annual bonus of 75% of Base Salary, up to a maximum of 187.5% of Base Salary, subject to meeting certain Company and individual performance goals. Upon a termination of Ms. Markoe's employment by the Company without cause, by Ms. Markoe for good reason, or upon the Company's election not to renew the Letter Agreement, Ms. Markoe will be entitled to (1) continued Base Salary, medical benefits, and a payment equal to her target Annual Bonus for a period of twelve months, (2) any Annual Bonus earned but unpaid for the year immediately prior to her termination date, and (3) a pro-rata portion of any Annual Bonus she would otherwise have been entitled to receive, based on actual performance for the year of the termination. Except in the event that Ms. Markoe's employment terminates within twenty-four months after a change in control, any continued Base Salary payments will be offset by compensation Ms. Markoe receives from a new employer, and her right to continuing medical benefits will cease immediately if she becomes eligible for coverage under another group health plan. To receive the benefits, Ms. Markoe must sign a general release with the Company. About J.Crew Group New York-based J.Crew Group, Inc. -- http://www.jcrew.com/-- is an internationally recognized omni-channel retailer of women's, men's and children's apparel, shoes and accessories. As of June 26, 2017, the Company operates 277 J.Crew retail stores, 118 Madewell stores, jcrew.com, jcrewfactory.com, the J.Crew catalog, madewell.com, and 179 factory stores (including 39 J.Crew Mercantile stores). For the year ended Jan. 28, 2017, J. Crew reported a net loss of $23.51 million following a net loss of $1.24 billion for the year ended Jan. 30, 2016. As of July 29, 2017, J Crew Group had $1.18 billion in total assets, $2.35 billion in total liabilities and a total stockholders' deficit of $1.17 billion. * * * As reported by the TCR on July 19, 2017, S&P Global Ratings raised its corporate credit rating on J. Crew Group to 'CCC+' from 'SD'. "The rating action follows our review of J. Crew capital structure following the company's exchange of the unsecured PIK toggle notes maturing in 2019. J. Crew has a 'Caa2' Corporate Family Rating from Moody's Investors Service. J. Crew's 'Caa2' Corporate Family Rating reflects its weak operating performance and high debt burden, with Moody's-adjusted debt/EBITDA of 7.8 times (credit agreement debt/EBITDA of 10.3 times) and EBIT/interest expense of 0.6 times pro-forma for the debt exchange. JJS IN THE DESERT: Creditors Consent to Cash Collateral Use ----------------------------------------------------------- Judge Bruce T. Beesley of the U.S. Bankruptcy Court for the District of Nevada authorized JJs In The Desert One, LLC to use the cash collateral generated by its operations, nunc pro tunc to the Petition Date. The Debtor is also authorized to use cash collateral to pay costs, fees and expenses related to the administration of this Chapter 11 case, and any other administrative expenses approved by the Court. Secured Creditors Stearns Bank, US Bank, ARF Financial, and RAJARATAKA, LLC have all consented to the Debtor's use of its cash collateral. Judge Beesley directed the Debtor to pay to the State of Nevada adequate protection payments of $175 per month. Such funds will not come from funds already held in trust by the Debtor to pay ongoing, post-petition sales and use taxes to the State of Nevada. A full-text copy of the Order, dated Sept. 5, 2017, is available at https://is.gd/v86ZC1 The State of Nevada is represented by: Robert E. Werbicky, Esq. Deputy Attorney General 555 E. Washington Avenue, Suite 3900 Las Vegas, Nevada 89101 About JJS In The Desert One JJs In The Desert One, LLC, owns and operates one Jimmy Johns gourmet sandwich restaurant located in Las Vegas, Nevada. JJs In The Desert One sought protection under Chapter 11 of the Bankruptcy Code (Bankr. D. Nev. Case No. 17-13269) on June 16, 2017. Veronica R. Turner, manager, signed the petition. The Debtor estimated assets of less than $50,000 and liabilities of less than $1 million. Bryan M. Viellion, Esq., at Kaempfer Crowell, serves as the Debtor's bankruptcy counsel. LA CONTESSA: Case Summary & 20 Largest Unsecured Creditors ---------------------------------------------------------- Debtor: La Contessa, Inc. 781 5th Avenue New York, NY 10022 Type of Business: La Contessa, Inc. is a privately-held company in the personal care services industry. It previously sought bankruptcy protection on Feb. 25, 2015 (Bankr. S.D.N.Y. Case No. 15-10414). Chapter 11 Petition Date: September 20, 2017 Case No.: 17-21549 Court: United States Bankruptcy Court Southern District of Florida (Fort Lauderdale) Debtor's Counsel: Jon Polenberg, Esq. BECKER & POLIAKOFF, P.A. 1 East Broward Blvd., Suite 1800 Fort Lauderdale, FL 33301 Tel: 954-364-6037 Fax: 954-985-4176 E-mail: jpolenberg@bplegal.com Estimated Assets: $0 to $50,000 Estimated Liabilities: $1 million to $10 million The petition was signed by Thomas M. Priano, vice president. A copy of the Debtor's list of 20 largest unsecured creditors is available for free at: http://bankrupt.com/misc/paeb17-21549.pdf A full-text copy of the Debtor's petition is available free of charge at: http://bankrupt.com/misc/paeb17-21549_petition.pdf LEVERETTE TILE: Seeks Authority to Continue Using Cash Collateral ----------------------------------------------------------------- Leverette Tile, Inc., d/b/a Leverette Home Design Center, seeks authority from the U.S. Bankruptcy Court for the Middle District of Florida for continued use of cash collateral in the regular course of its business and in order to pay its expenses so that it may continue to operate as a going concern. The Debtor claims that the continued operations will produce substantial revenues for the Debtor and is the funding mechanism for the Debtor's reorganization efforts and for the Debtor to pay its debt service. On average the Debtor believes that it will be able to generate approximately $350,000 in gross revenue per month. The Debtor is indebted to American Express Bank, FSB in the approximate amount of $124,381 in connection with a merchant services agreement. American Express has a first position lien on the Debtor's personal property. Additionally, the Debtor is indebted to Funding Circle, a/k/a FC Market Place, LLC in the amount of approximately $351,958 in connection with a merchant services agreement. Funding Circle has a second position lien on the Debtor's personal property. The Debtor estimates that the value of its personal property is approximately $392,101 (subject to appraisal), with approximately $16,332 in cash and $151,548 in receivables. Neither American Express nor Funding Circle have consented to the Debtor's use of cash collateral but the Debtor's counsel will endeavor to obtain such consent. A full-text copy of the Debtor's Motion, dated Sept. 5, 2017, is available at https://is.gd/TSqiLi About Leverette Tile Leverette Tile, Inc., based in Hudson, Florida, is a kitchen and bath remodeling contractor and a granite countertop and cabinet fabricator. Leverette Tile filed a Chapter 11 petition (Bankr. M.D. Fla. Case No. 17-07840) on Sept. 5, 2017. The petition was signed by Brian Leverette, president. In its petition, the Debtor estimated $100,000 to $500,000 in assets and $1 million to $10 million in liabilities. Alberto F. Gomez, Jr., Esq., at Johnson Pope Bokor Ruppel & Burns, LLP, serves as bankruptcy counsel to the Debtor. LMC MEDICAL: Claims in Chapter 727 Case Due Dec. 20 --------------------------------------------------- LMC Medical Supplies, Inc., d/b/a LMC Pharmacy, filed on August 22, 2017, a petition commencing an assignment for the benefit of creditors pursuant to Chapter 727, Florida Statutes, to Ross R. Hartog. Pursuant to Section 727.105, Florida Statutes: (a) proceedings may not be commenced against the Assignee except as provided in Chapter 727, Florida Statutes, and (b) except in the case of a consensual lienholder enforcing its rights in collateral, there shall be no levy, execution, attachment, or the like in the respect of any judgment against assets of the estate, other than real property, in the possession, custody, or control of the Assignee. LMC Medical Supplies, Inc. d/b/a LMC Pharmacy -- the Assignor -- has its principal place of business at 1090 Holland Drive, Suite 3, Boca Raton, FL 33487. Ross R. Hartog, as the Assignee, may be reached at: Ross R. Hartog 101 NE Third Avenue, Suite 1210 Fort Lauderdale, FL 33301 To receive any dividend in this proceeding, parties-in-interest must file a proof of claim with the Assignee on or before December 20, 2017. The Assignee is represented by: GRACE E. ROBSON, Esq. MARKOWITZ, RINGEL, TRUSTY & HARTOG, P.A. 101 NE Third Avenue, Suite 1210 Fort Lauderdale, Florida 33301 Tel: (954) 767-0030 Fax: (954) 767-0035 E-mail: litservice@mrthlaw.com grobson@mrthlaw.com The case is, In re: ASSIGNMENT FOR THE BENEFIT OF CREDITORS OF LMC MEDICAL SUPPLIES, INC. d/b/a LMC Pharmacy, a Florida corporation, Assignor, To: ROSS R. HARTOG, Assignee, Case No. 17-CA-009476-XXXX-MB, in the Circuit Court of the 15th Judicial Circuit in and for Palm Beach County, Florida. LOVE GRACE: Has Final Authorization to Use Cash Collateral ---------------------------------------------------------- Judge Douglas D. Dodd the U.S. Bankruptcy Court for the Middle District of Louisiana issued a final order authorizing Love Grace Holdings, Inc., to use cash collateral in accordance with a budget. As adequate protection for its use of the cash collateral of Home Bank and Carlos Padial Jr., the Debtor is directed to: (a) maintain its inventory at $400,000 based on cost; (b) on a weekly basis, pay in full Mr. Padial's credit card debt for postpetition inventory purchases used to purchase inventory provided an equal amount of inventory is acquired for the Debtor; and (c) give to Home Bank and Mr. Padial a replacement lien on after acquired inventory in the same rank and priority as Home Bank and Mr. Padial currently possess and subject to any debtor-in-possession that this court may approve. The Debtor's right to use Cash Collateral shall automatically and immediately terminate upon the occurrence of any of the following event of default: (a) The Debtor will suffer the appointment of a trustee or examiner with expanded power; (b) The Debtor's Chapter 11 case is converted to a case under chapter 7 of the Bankruptcy Code, or Debtor files a motion to convert its chapter 11 Case to a case under chapter 7 of the Bankruptcy Code; or (c) The Debtor fails to maintain $400,000 inventory at cost. A full-text copy of the Final Order, dated September 5, 2017, is available at https://is.gd/1SNKYd About Love Grace Holdings Love Grace Holdings, Inc., doing business as Apricot Lane and Blu Spero Boutique, operates a series of retail clothing outlets in malls. The locations are in Florida, Alabama, Louisiana and Mississippi. Love Grace Holdings filed a Chapter 11 petition (Bankr. M.D. La. Case No. 17-10057) on Jan. 20, 2017. The petition was signed by Arthur A. Lancaster, Jr., president and sole shareholder. The Debtor estimated assets and liabilities at $1 million to $10 million. The case is assigned to Judge Douglas D. Dodd. The Debtor is represented by Greta M. Brouphy, Esq., and Douglas S. Draper, Esq., at Heller, Draper, Patrick, Horn & Dabney, LLC. On Feb. 6, 2017, the U.S. trustee for Region 5 appointed an official committee of unsecured creditors. The committee members are: (1) GGP Limited Partnership; (2) Intex Flooring, LLC; and (3) Douglas Kampen. The Committee retained Paul Douglas Stewart, Jr., Esq., at Stewart Robbins & Brown, LLC, as its legal counsel. No trustee or examiner has been appointed or designated in the case. MAXIMUS III: Hires Michael A. Partlow as Chapter 11 Counsel ----------------------------------------------------------- Maximus III Properties, LLC, seeks approval from the United States Bankruptcy Court for the Northern District of Ohio, Youngstown Division, to employ Michael A. Partlow as its bankruptcy counsel. The services Mr. Partlow will render are: a. give the Debtor legal advice with respect to its powers and duties in the continued operation of the business and management of its property; b. prosecute any necessary litigation on behalf of the Debtor; c. represent Debtor in connection with all matters that may be filed in the Court; d. prepare on behalf of the Debtor all petitions, applications, answers, orders, reports and other papers and pleadings; and e. perform all other legal services for the Debtor. Mr. Partlow attests that he represents no other entity in connection with this case, is believed to be disinterested as the term is defined in 11 U.S.C. Sec. 101(14), and represents and holds no interest adverse to the interest of the estate with respect to the matters for which he is to be employed. A total of $7,500, including filing fees, was paid to Mr. Partlow for prepetition services relating to the bankruptcy cases. Mr. Partlow's current billing rate is $225.00 per hour. The Counsel can be reached through: Michael A. Partlow, Esq. 112 South Water Street, Suite C Kent, OH 44240 Tel: 330-400-2290 Fax: 888-707-5871 E-mail: partlowlaw@aol.com About Maximus III Properties Maximus III Properties LLC is a Nevada limited liability company whose principal assets are located at 408 Dana Street, Warren, OH, 44483. The Debtor filed a Chapter 11 petition (Bankr. N.D. Ohio Case No. 17-41723) on September 7, 2017. The petition was signed by Sergio DiPaolo, managing member. The Hon. Kay Woods presided over the case. The Debtor is represented by Michael A. Partlow, Esq. as counsel. At the time of filing, the Debtor estimates $1 million to $10 million in assets and $100,000 to $500,000 in liabilities. MCCLATCHY CO: Class A Common Stock Delisted from NYSE ----------------------------------------------------- The McClatchy Company filed a Form 25 with the Securities and Exchange Commission notifying the removal from listing of its Class A Common Stock, $0.01 par value per share, on the New York Stock Exchange. The Company approved the voluntary transfer of the listing of the Company's Class A common stock to the NYSE American LLC from the New York Stock Exchange. About McClatchy The McClatchy Company -- http://www.mcclatchy.com/-- is publisher of iconic brands such as the Miami Herald, The Kansas City Star, The Sacramento Bee, The Charlotte Observer, The (Raleigh) News & Observer, and the (Fort Worth) Star-Telegram. McClatchy operates 30 media companies in 29 U.S. markets in 14 states, providing each of its communities with high-quality news and advertising services in a wide array of digital and print formats. McClatchy is headquartered in Sacramento, Calif., and listed on the New York Stock Exchange under the symbol MNI. McClatchy reported a net loss of $34.19 million for the year ended Dec. 25, 2016, compared to a net loss of $300.16 million for the year ended Dec. 27, 2015. As of June 25, 2017, the Company had $1.68 billion in total assets, $1.68 billion in total liabilities, and a $8.74 million stockholders' deficit. * * * McClatchy continues to hold Moody's Investors Service's "Caa1" corporate family rating. In December 2015, Moody's affirmed the "Caa1" corporate family rating rating and changed the rating outlook to stable from positive due to continued weakness in the print advertising market and the ongoing pressure on the company's operating cashflow. McClatchy continues to hold Standard & Poor's "B-" corporate credit rating (outlook stable). As reported by the TCR on April 2, 2014, S&P affirmed all ratings on McClatchy including the 'B-' corporate credit rating, and revised the rating outlook to stable from positive. The outlook revision to stable reflected S&P's expectation that the time-frame for a potential upgrade lies beyond the next 12 months, and could also depend on the company realizing value from its digital minority interests. MD2U MANAGEMENT: Has Interim Approval to Use Cash Collateral ------------------------------------------------------------ Judge Joan A. Lloyd of the U.S. Bankruptcy Court for the Western District of Kentucky authorized MD2U Management, LLC, and its affiliates to continue to use on interim basis, in its ordinary course of business, all of their prepetition accounts receivable and any postpetition accounts receivable they generate during this proceeding, pending further order of the Court. The Cash Collateral Creditor will have, as adequate protection for its claims of security for the use of the accounts receivable as cash collateral of the Debtor, a security interest in the following: (1) A continued security interest in and to all prepetition accounts receivable of the Debtor. (2) A security interest in and to all postpetition accounts receivable of the debtor and proceeds thereof. (3) A security interest in the inventory of the debtor and the proceeds thereof. (4) To the extent the United States' interest and set off rights in the Medicare Receivables have been or will be reduced by payments made by the United States to the Debtor on or after the Petition Date, the United States will have set-off rights against any postpetition payments of Medicare Receivables, to the same extent the United States has set-off rights against the prepetition Medicare Receivables as of the Petition Date. A full-text copy of the Order, dated Sept. 5, 2017, is available at https://is.gd/TIsY3a Byline Bank is represented by: Bradley Salyer, Esq. Morgan & Pottinger, P.S.C. 401 South Fourth St., Suite 1200 Louisville, KY 40202 The United States is represented by: Katherine Bell, Esq. Assistant U.S. Attorney U.S. Attorney's Office, W.D. KY. 717 West Broadway Louisville, KY 40202 The U.S. Trustee is represented by: Tyler R. Yeager, Esq. OFFICE OF THE U.S. TRUSTEE 601 W. Broadway, Suite 512 Louisville, Kentucky 40202 Telephone: 502-582-6000 x223 About MD2U Management Founded in 2010 and based in Louisville, Kentucky MD2U Management, LLC -- http://www.md2u.com/-- provides home-based primary medical care services for chronic and acute illnesses. The Company offers adult primary care, medication management, post discharge visits, wound care visits, mental and behavioral healthcare, mobility assessments, home medical equipment assessments, end of life care, and mental health services. It serves to home-bound or home-limited patients in Kentucky, Indiana, Ohio and North Carolina. MD2U Management LLC and its affiliates MD2U Kentucky LLC, MD2U Indiana LLC, and MD2U North Carolina LLC each filed separate Chapter 11 petition (Bankr. W.D. Ky. Case Nos. 17-32761 to 17-32764) on Aug. 29, 2017. The cases are jointly administered. The petitions were signed by Joel Coleman, president. MD2U Management estimated $500,000 to $1 million in assets and $1 million to $10 million in debt. MD2U Kentucky estimated between $1 million and $10 million in assets, and $500,000 to $1 million in debt. The Debtors are represented by Charity Bird Neukomm, Esq., at Kaplan & Partners LLP. MED-CARE DIABETIC: Claims in Chapter 727 Case Due Dec. 15 --------------------------------------------------------- Med-Care Diabetic & Medical Supplies, Inc., filed on Aug. 17, 2017, a petition commencing an assignment for the benefit of creditors pursuant to Chapter 727, Florida Statutes, to Ross R. Hartog. Pursuant to Section 727.105, Florida Statutes: (a) proceedings may not be commenced against the Assignee except as provided in Chapter 727, Florida Statutes, and (b) except in the case of a consensual lienholder enforcing its rights in collateral, there shall be no levy, execution, attachment, or the like in the respect of any judgment against assets of the estate, other than real property, in the possession, custody, or control of the Assignee. Med-Care Diabetic has its principal place of business at 6500 East Rogers Circle, Suite A, Boca Raton, FL 33487. Ross R. Hartog, as the Assignee, may be reached at: Ross R. Hartog 101 NE Third Avenue, Suite 1210 Fort Lauderdale, FL 33301 To receive any dividend in this proceeding, parties-in-interest must file a proof of claim with the Assignee on or before Dec. 15, 2017. The Assignee is represented by: GRACE E. ROBSON, Esq. MARKOWITZ, RINGEL, TRUSTY & HARTOG, P.A. 101 NE Third Avenue, Suite 1210 Fort Lauderdale, Florida 33301 Tel: (954) 767-0030 Fax: (954) 767-0035 E-mail: litservice@mrthlaw.com grobson@mrthlaw.com The case is, In re: ASSIGNMENT FOR THE BENEFIT OF CREDITORS OF MED-CARE DIABETIC & MEDICAL SUPPLIES, INC., a Florida corporation, Assignor, To: ROSS R. HARTOG, Assignee, Case No. 17-CA-009295-XXXX-MB, in the Circuit Court of the 15th Judicial Circuit in and for Palm Beach County, Florida. MED-CARE INC: Claims in Chapter 727 Case Due Dec. 20 ---------------------------------------------------- Med-Care, Inc., filed on Aug. 22, 2017, a petition commencing an assignment for the benefit of creditors pursuant to Chapter 727, Florida Statutes, to Ross R. Hartog. Med-Care, Inc. as Assignor, has its principal place of business at 1470 Silver Creek Road, Lewisberg, TN 37091. Pursuant to Section 727.105, Florida Statutes: (a) proceedings may not be commenced against the Assignee except as provided in Chapter 727, Florida Statutes, and (b) except in the case of a consensual lienholder enforcing its rights in collateral, there shall be no levy, execution, attachment, or the like in the respect of any judgment against assets of the estate, other than real property, in the possession, custody, or control of the Assignee. Ross R. Hartog, as the Assignee, may be reached at: Ross R. Hartog 101 NE Third Avenue, Suite 1210 Fort Lauderdale, FL 33301 To receive any dividend in this proceeding, parties-in-interest must file a proof of claim with the Assignee on or before December 20, 2017. The Assignee is represented by: GRACE E. ROBSON, Esq. MARKOWITZ, RINGEL, TRUSTY & HARTOG, P.A. 101 NE Third Avenue, Suite 1210 Fort Lauderdale, Florida 33301 Tel: (954) 767-0030 Fax: (954) 767-0035 E-mail: litservice@mrthlaw.com grobson@mrthlaw.com The case is, In re: ASSIGNMENT FOR THE BENEFIT OF CREDITORS OF MED-CARE, INC., a Tennessee corporation, Assignor, To: ROSS R. HARTOG, Assignee, Case No. 17-CA-009481-XXXX-MB, in the Circuit Court of the 15th Judicial Circuit in and for Palm Beach County, Florida. MED-CARE MEDICAL: Claims in Chapter 727 Case Due Dec. 20 -------------------------------------------------------- Med-Care Medical & Pharmacy, Inc., filed on Aug. 22, 2017, a petition commencing an assignment for the benefit of creditors pursuant to Chapter 727, Florida Statutes, to Ross R. Hartog. Pursuant to Section 727.105, Florida Statutes: (a) proceedings may not be commenced agains t the Assignee except as provided in Chapter 727, Florida Statutes, and (b) except in the case of a consensual lienholder enforcing its rights in collateral, there shall be no levy, execution, attachment, or the like in the respect of any judgment against assets of the estate, other than real property, in the possession, custody, or control of the Assignee. Med-Care Medical has its principal place of business at 50 Commerce Street, Unit 2, Brevard, NC 28412. Ross R. Hartog, as the Assignee, may be reached at: Ross R. Hartog 101 NE Third Avenue, Suite 1210 Fort Lauderdale, FL 33301 To receive any dividend in this proceeding, parties-in-interest must file a proof of claim with the Assignee on or before December 20, 2017. The Assignee is represented by: GRACE E. ROBSON, Esq. MARKOWITZ, RINGEL, TRUSTY & HARTOG, P.A. 101 NE Third Avenue, Suite 1210 Fort Lauderdale, Florida 33301 Tel: (954) 767-0030 Fax: (954) 767-0035 E-mail: litservice@mrthlaw.com grobson@mrthlaw.com The case is, In re: ASSIGNMENT FOR THE BENEFIT OF CREDITORS OF MED-CARE MEDICAL & PHARMACY, INC., a North Carolina corporation, Assignor, To: ROSS R. HARTOG, Assignee, Case No. 17-CA-009478-XXXX-MB, in the Circuit Court of the 15th Judicial Circuit in and for Palm Beach County, Florida. MESOBLAST LIMITED: Completes A$50.7 Million Entitlement Offer ------------------------------------------------------------- Mesoblast Limited announced it had successfully completed the fully underwritten 1 for 12 pro-rata accelerated non-renounceable entitlement offer raising approximately A$50.7 million (Entitlement Offer). After adjusting for total net proceeds from the Entitlement Offer, Mesoblast had cash reserves of US$84.0 million on a pro-forma basis as of June 30, 2017. The proceeds from the Entitlement Offer and existing cash reserves will ensure Mesoblast is fully funded to complete/advance its near term objectives. Mesoblast Chief Executive Dr Silviu Itescu said: "We appreciate the strong support from both our institutional and retail shareholders. Mesoblast's strengthened cash reserves will provide strategic flexibility in line with upcoming important clinical trial readouts." Retail Entitlement Offer The retail component of the Entitlement Offer (Retail Entitlement Offer) under which eligible retail shareholders were able to take up their pro rata entitlement and apply for additional new shares closed on Sept. 12, 2017. The Retail Entitlement Offer was fully underwritten by Bell Potter Securities Limited, and there was strong take up by eligible retail shareholders, including applications for additional new shares under the top up facility. New shares to be issued in relation to the final acceptance under the Retail Entitlement Offer (including additional new shares) are expected to be allotted on Sept. 18, 2017 and commenced trading on a normal settlement basis on Sept. 19, 2017. Holding statements were expected to be dispatched on Sept. 19, 2017. About Mesoblast Mesoblast Limited (ASX:MSB; Nasdaq:MESO) is a global developer of innovative cell-based medicines. The Company has leveraged its proprietary technology platform, which is based on specialized cells known as mesenchymal lineage adult stem cells, to establish a broad portfolio of late-stage product candidates. Mesoblast's allogeneic, 'off-the-shelf' cell product candidates target advanced stages of diseases with high, unmet medical needs including cardiovascular conditions, orthopedic disorders, immunologic and inflammatory disorders and oncologic/hematologic conditions. Mesoblast Limited reported a net loss before income tax of US$90.21 million for the year ended June 30, 2017, compared to a net loss before income tax of US$90.82 million for the year ended June 30, 2016. As of June 30, 2017, Mesoblast had US$655.7 million in total assets, US$138.9 million in total liabilities and US$516.8 million in total equity. PricewaterhouseCoopers, in Melbourne, Australia, issued a "going concern" opinion on the consolidated financial statements for the year ended June 30, 2017, noting that Company has suffered recurring losses from operations that raise substantial doubt about its ability to continue as a going concern. MICRON TECHNOLOGY: Egan-Jones Raises Sr. Unsec. Debt Ratings to BB+ ------------------------------------------------------------------- Egan-Jones Ratings Company, on July 26, 2017, hiked the senior unsecured ratings on debt issued by Micron Technology Inc. to BB+ from BB. Micron Technology is an American global corporation based in Boise, Idaho which produces many forms of semiconductor devices, including dynamic random-access memory, flash memory, and solid-state drives. MRI INTERVENTIONS: Satterfield Holds 5.7% Stake as of Sept. 18 -------------------------------------------------------------- Thomas A. Satterfield, Jr. disclosed in a Schedule 13G filed with the Securities and Exchange Commission that as of Sept. 18, 2017, he beneficially owns 586,855 shares of common stock of MRI Interventions, Inc., which constitutes 5.7 percent of the shares outstanding. The percentage is based on 10,339,210 shares of Common Stock of the Company outstanding as of Aug. 18, 2017, as reported by the issuer in its Definitive Proxy Statement on Schedule 14A, filed with the Securities and Exchange Commission on Sept. 5, 2017. With respect his beneficial ownership, 100,000 shares are held by Tomsat Investment & Trading Co., Inc., a corporation wholly owned by Mr. Satterfield and of which he serves as president; 186,855 shares are held by Caldwell Mill Opportunity Fund, which fund is managed by an entity of which Mr. Satterfield owns a 50% interest and serves as Chief Investment Manager; and 250,000 shares are held by A.G. Family L.P., a limited partnership with respect to which Mr. Satterfield has a limited power of attorney for voting and disposition purposes but that has the right to receive or the power to direct the receipt of the proceeds from the sale of its shares. A full-text copy of the regulatory filing is available at: https://is.gd/IzjxdX About MRI Interventions Based in Irvine, Calif., MRI Interventions, Inc. -- http://www.mriinterventions.com/-- is a medical device company focused on the development and commercialization of technology that enables physicians to see inside the brain and heart using direct, intra-procedural magnetic resonance imaging guidance while performing minimally invasive surgical procedures. The Company was incorporated in the state of Delaware in March 1998. The Company's principal executive office and principal operations are located in Irvine, California. The Company established MRI Interventions (Canada) Inc., a wholly-owned subsidiary incorporated in Canada, in August 2013. This subsidiary was established primarily for the purpose of performing software development, and its activities are reflected in these condensed consolidated financial statements. MRI Interventions incurred a net loss of $8.06 million in 2016, compared to a net loss of $8.44 million in 2015. As of June 30, 2017, MRI Interventions had $16.85 million in total assets, $8.32 million in total liabilities and $8.52 million in total stockholders' equity. Cherry Bekaert LLP, in Charlotte, North Carolina, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2016, citing that the Company incurred net losses during the years ended Dec. 31, 2016, and 2015 of approximately $8.1 million and $8.4 million, respectively. Additionally, the stockholders' deficit at Dec. 31, 2016, was approximately $756,000. These conditions raise substantial doubt about the Company's ability to continue as a going concern. NATIONAL TRUCK: U.S. Trustee Forms 3-Member Committee ----------------------------------------------------- Henry G. Hobbs, Jr., Acting U.S. Trustee for Region 5, on Sept. 19 appointed three creditors to serve on the official committee of unsecured creditors in the Chapter 11 case of National Truck Funding, LLC. The committee members are: (1) Yolo Capital, Inc. Maureen Brandner Muller 6 LaRue Court Candler, NC 28715 Tel: (985) 869-0265 (2) Hannah Baby, LLC Michael Brandner 1509 Kuebel Street Harahan, LA 70123 Tel: (504) 616-6405 (3) Kevin C. Faerber 305A Old West Point Road Starkville, MS 39750 Tel: (662) 769-6445 Official creditors' committees have the right to employ legal and accounting professionals and financial advisors, at a debtor's expense. They may investigate the debtor's business and financial affairs. Importantly, official committees serve as fiduciaries to the general population of creditors they represent. About National Truck Funding Headquartered in Gulfport, Mississippi, National Truck Funding, LLC -- http://nationaltruckfunding.com/-- retails and rents trucks. It operates as a subsidiary of American Truck Group, LLC -- http://americantruckgroup.com/. National Truck and American Truck sought Chapter 11 protection (Bankr. S.D. Miss. Case Nos. 17-51243 and 17-51244) on June 25, 2017. The petitions were signed by Louis J. Normand, Jr., manager. National Truck estimated its assets and liabilities at $10 million to $50 million. American Truck estimated its assets and liabilities at $1 million to $10 million. Judge Katharine M. Samson presides over the cases. The Debtors hired Lugenbuhl, Wheaton, Peck, Rankin & Hubbard as bankruptcy counsel; Wessler Law Firm as local counsel; Lefoldt & Company PA as accountant; and Chaffe & Associates as restructuring advisor and investment banker. NAVISTAR INTERNATIONAL: Extends Maturity of Revolving Loans to 2021 ------------------------------------------------------------------- Navistar Financial Corporation, on Sept. 18, 2017, entered into an amendment no. 1 to the Third Amended and Restated Credit Agreement, dated as of May 27, 2016, by and among NFC and Navistar Financial, S.A. de C.V., Sociedad Financiera De Objeto Multiple, Entidad Regulada, a Mexican corporation, as borrowers, the lenders party thereto, JPMorgan Chase Bank, N.A., as administrative agent, and Bank of America, N.A., as syndication agent, pursuant to which (i) the interest rates and commitment fee percentages applicable to revolving loans with respect to extended revolving commitments were reduced, (ii) the revolving maturity date was extended to Sept. 18, 2021, (iii) the swingline facility was increased to $50 million, (iv) the definition of "Change in Control" was revised to include Volkswagen AG and its affiliates as permitted holders, (v) the definition of "Permitted Investments" was revised, (vi) a dividend and investment basket of up to $150,000,000, depending upon the amount of acceptable additional indebtedness incurred by the borrowers or NFC's subsidiaries, was added and (vii) provisions to address the planned elimination of LIBOR were added. The Amendment reduces the interest rates applicable to revolving loans with respect to extended revolving commitments by approximately 0.75% to 1.25% and the commitment fee percentages applicable to revolving loans with respect to extended revolving commitments by approximately 0.125% to 0.375%, in each case, depending upon the ratings of Navistar International Corporation and NFC. Under the terms of the Amendment (i) the interest rate on revolving loans with respect to extended revolving commitments is based, at the borrower's option, on an adjusted eurodollar rate, plus a margin of 2.25% to 4.00%, or a base rate, plus a margin of 1.25% to 3.00%, and (ii) the commitment fee percentage applicable to revolving loans with respect to extended revolving commitments is 0.375% to 0.625%. In connection with the Amendment, NFC paid certain fees, the total of which NFC does not believe is material to its financial position or results of operations. A full-text copy of the Amended Credit Agreement is available for free at https://is.gd/gdydR7 About Navistar Lisle, Illinois-based Navistar International Corporation (NYSE: NAV) -- http://www.navistar.com/-- is a holding company whose subsidiaries and affiliates produce International brand commercial and military trucks, proprietary diesel engines, and IC Bus brand school and commercial buses. An affiliate also provides truck and diesel engine service parts. Another affiliate offers financing services. Navistar reported a net loss attributable to the Company of $97 million on $8.11 billion of net sales and revenues for the year ended Oct. 31, 2016, compared with a net loss attributable to the Company of $184 million on $10.14 billion of net sales and revenues for the year ended Oct. 31, 2015. As of July 31, 2017, Navistar had $6.08 billion in total assets, $11 billion in total liabilities, and a total stockholders' deficit of $4.92 billion. * * * Navistar carries a 'B3' Corporate Family Rating (CFR) and stable outlook from Moody's. Moody's said in January 2017 that Navistar's ratings reflects the continuing challenges the company faces in re-establishing its competitive position and profitability in the North American medium and heavy truck markets. In March 2017, S&P Global Ratings said it raised its corporate credit ratings on Navistar to 'B-' from 'CCC+'. The outlook is stable. The upgrade follows Navistar's strategic alliance with Volkswagen Truck & Bus, which includes Volkswagen Truck & Bus' 16.6% equity stake in Navistar, definitive agreements for the two companies to collaborate on technology, and the formation of a procurement JV. In March 2017, Fitch Ratings upgraded the Issuer Default Ratings for Navistar one notch to 'B-' from 'CCC' and removed the ratings from Rating Watch Positive. The upgrade reflects improved prospects for NAV's financial performance due to its alliance with VW T&B. NEONODE INC: Appoints Two New Members to Board of Directors ----------------------------------------------------------- Andreas Bunge and Ulf Rosberg were appointed as members of the Board of Directors of Neonode Inc., on Sept. 13, 2017. Mr. Bunge will serve as a Class I director and Mr. Rosberg will serve as a Class II director. Mr. Bunge, age 57, since 2015 has been chief executive officer of Merkatura AB, a private holding company, and provides business consulting for technology companies. Between 2012 and 2015, he served as chief executive officer of Spago Nanomedical AB (formerly Spago Imaging AB) until its public listing on the NASDAQ OMX Nordic stock exchange. Between 2005 and 2012, Mr. Bunge founded and served as chief executive officer of Accelerator Nordic AB, which spun-off Spago Imaging in 2012. Prior to Accelerator Nordic, he founded and served as chief executive officer of Applied Sensor AB and held various managerial positions at Intentia AB. He also has served as a member of the boards of directors of numerous companies during the past 15 years. Mr. Bunge has an MSc in Engineering and Management from Linkoping University. Mr. Rosberg, age 52, currently serves as chief executive officer of UMR Invest AB, a private holding company, and as Chairman of Payair Technologies AB. He previously served in various leadership positions at Nordic Capital AB from 1994 until June 2017, including as investment manager, director, partner, and most recently as senior advisor since 2012. Prior to joining Nordic Capital, Mr. Rosberg held corporate finance positions with SEB Investment Banking and Leimdorfer & Partners. He has an M.Sc. in Economics from the Stockholm School of Economics and a degree with a major in finance from New York University, Stern School of Business in New York. Subsequent to the 2017 Annual Meeting of Stockholders to be held on Oct. 3, 2017, the Board of Directors anticipates determining on which committee(s) Messrs. Bunge and Rosberg will serve. As directors, Messrs. Bunge and Rosberg will be entitled to compensation for their service in the same manner as other members of the Board of Directors. The appointment of Messrs. Bunge and Rosberg was made as a result of a Securities Purchase Agreement dated Aug. 2, 2017, pursuant to which the purchasers of a majority of the securities became entitled to designate up to two individuals to join the Board of Directors no later than the 2017 Annual Meeting of Stockholders. Messrs. Bunge and Rosberg were the designees. The Securities Purchase Agreement does not provide the majority purchasers with any ongoing representation. Subsequent to the initial appointment to the Board of Directors, Messrs. Bunge and Rosberg are not assured of being nominated for election at a future annual meeting of stockholders. In the event either Messrs. Bunge or Rosberg cease to serve as director for any reason, the Board of Directors is not obligated under the Securities Purchase Agreement to appoint any replacement individual to fill the vacancy. Entities controlled by Messrs Bunge and Rosberg were among the purchasers of Neonode common stock at $1.00 per share and warrants with an exercise price of $2.00 per share, exercisable 12 months from the date of issuance until expiration three years from the date of issuance, in the Securities Purchase Agreement dated Aug. 2, 2017. Specifically, Mr. Bunge beneficially acquired 750,000 shares of common stock and a warrant to purchase 250,000 additional shares of common stock, and Mr. Rosberg beneficially acquired 3,500,000 shares of common stock and a warrant to purchase 1,166,667 additional shares of common stock. Mr. Bunge and Mr. Rosberg thereby beneficially own 1.3% and 6.0%, respectively, of shares of Neonode common stock. As a result, all current directors and executive officers of Neonode and nominees for election at the 2017 Annual Meeting of Stockholders beneficially own 11,653,681 shares, representing 19.6%, of Neonode common stock. About Neonode Neonode Inc. (NASDAQ: NEON) -- http://www.neonode.com/-- develops and licenses optical interactive sensing technologies. Neonode's patented optical interactive sensing technology is developed for a wide range of devices like automotive systems, printers, PC devices, monitors, mobile phones, tablets and e-readers. The Company's principal executive office is located in Stockholm, Sweden. Its office in the United States is located in San Jose, California. Neonode, formerly known as SBE, Inc., was incorporated in the State of Delaware on Sept. 4, 1997. SBE's name was changed to Neonode Inc. upon the completion of a merger on Aug. 10, 2007, between SBE and the parent company of Neonode AB, a company founded in February 2004 and incorporated in Sweden. As a result of the merger, the business and operations of Neonode AB became the primary business and operations of Neonode Inc. Neonode incurred a net loss attributable to the Company of $5.29 million for the year ended Dec. 31, 2016, a net loss attributable to the Company of $7.82 million for the year ended Dec. 31, 2015, and a net loss attributable to the Company of $14.23 million for the year ended Dec. 31, 2014. As of June 30, 2017, Neonode had $10.80 million in total assets, $8.56 million in total liabilities and $2.23 million in total stockholders' equity. The Company has incurred significant operating losses and negative cash flows from operations since its inception. The Company incurred net losses of approximately $1.0 million and $1.3 million and $1.9 million and $2.7 million for the three and six months ended June 30, 2017 and 2016, respectively, and had an accumulated deficit of approximately $180.9 million and $179.0 million as of June 30, 2017 and Dec. 31, 2016, respectively. In addition, operating activities used cash of approximately $3.0 million and $2.1 million for the six months ended June 30, 2017 and 2016, respectively. NOAH WEBSTER: S&P Alters 2014/2015 Revenue Bonds Outlook to Stable ------------------------------------------------------------------ S&P Global Ratings revised its outlook to stable from negative while affirming the 'BB' rating on the PIMA County Industrial Development Authority, Ariz.'s series 2014 and 2015 charter school revenue and revenue refunding bonds, issued on behalf of Noah Webster Basic Schools Inc. "The revised outlook reflects our view of Noah Webster's at Noah Webster Schools Pima campus (NWS-Pima), which is more in line with projected expectations," said S&P Global Ratings credit analyst Beatriz Peguero. "Furthermore, increased enrollment has led to improved financial performance and lease-adjusted maximum annual debt service coverage that we view as more in line with the current rating." S&P said, "Given the debt structure and security features, as described below, we view all bonds as ultimately secured by the revenues of Noah Webster Schools Mesa campus (NWS-Mesa, or the obligated group). NWS-Mesa constitutes the majority of assets, revenue, and enrollment of Noah Webster, and we view NWS-Mesa as integral to the organization's identity and future strategy. As such, based on our Group Rating Methodology criteria, released Nov. 19, 2013, the 'BB' rating is based on our view of Noah Webster's 'bb' rated group credit profile and the obligated group's core status. Accordingly, the bonds are rated on par with the group credit profile. All numbers in this report, unless indicated otherwise, reflect the consolidated financials of Noah Webster, including NWS-Mesa, NWS-Pima, and LAS School Foundation (LAS), a 501(c)(3) created to manage facilities and fundraising for the organization. The rating applies only to the series 2014 and 2015 bonds and does not apply to Noah Webster as an organization. Our analysis is based on fiscal 2016 audited and fiscal 2017 full-accrual unaudited results since management does not expect material changes in the final audited presentation. "We assessed Noah Webster's enterprise profile as adequate, characterized by charters that are in good standing and in the early years of their 15- and 20-year renewals, and strengthening demand with growing enrollment and solid retention. We assessed Noah Webster's financial profile as vulnerable, with weak liquidity, a high debt burden and somewhat variable operating performance on a full accrual basis, though fiscal 2017 unaudited results demonstrate substantial improvement. We believe that, combined, these credit factors lead to an indicative standalone credit profile of 'bb' and a final rating of 'BB'." The series 2015 bonds are secured by a lien on the state payments received for NWS-Mesa on a parity basis with the unrated series 2011 bonds. The series 2014 bonds are secured by revenues of NWS-Pima, and a series 2014 guarantee, which pledges NWS-Mesa revenues to the 2014 bonds in the event NWS-Pima's revenues are insufficient. NWS-Mesa's guarantee provides unconditional credit substitution in a timely manner without the ability to reduce or terminate the guarantee. S&P said, "As such, under our Guarantee criteria, published Oct. 21, 2016, we look to NWS-Mesa's credit profile in our analysis of the series 2014 bonds. The 2014 guarantee will remain in place until such time that a rating on the 2014 bonds would be maintained without the guarantee. Noah Webster also has outstanding series 2011 bonds, which were originally secured on a subordinate basis, but were elevated to parity status so long as the guarantee from the 2014 bonds remains in effect." OAKS OF PRAIRIE: Can Use Cash for September 2017 Expenses --------------------------------------------------------- Judge Thomas M. Lynch of the U.S. Bankruptcy Court for the Northern District of Illinois has authorized The Oaks of Prairie Point Condominium Association to use cash collateral during the period Sept. 1 to 30, 2017. A status hearing on the cash collateral use will be held on Sept. 29, 2017, at 11:00 a.m. The Debtor will pay Illinois State Bank the sum of $10,729 by Sept. 15, 2017. The payments will be made from the Debtor's reserve account at Illinois State Bank, to be creditor to the Debtor's loan. During the duration of the cash collateral court order, the Debtor will not make any disbursements from or deposits to the Debtor-in-Possession account currently located at Rockford Bank and Trust. In return for the Debtor's continued interim use of cash collateral, the Lender is granted the following adequate protection: (a) Illinois State Bank is granted a valid and perfected, enforceable security interest in and to the Debtor's postpetition accounts, assessments and other receivables which are no or hereafter become property of the estate to the extent and priority of its alleged prepetition liens, but only to the extent of any diminution in the value of the assets during the period from the commencement of the case through September 30, 2017. (b) The Debtor will permit Illinois State Bank to inspect its books and records; (c) The Debtor will maintain and pay premiums for insurance to cover all of its assets from theft and water damage; (d) The Debtor will make available to Illinois State Bank evidence of that which constitutes its collateral or proceeds; and (e) The Debtor will properly maintain the Property in good repair and properly manage such Property. A full-text copy of the Order, dated Sept. 5, 2017, is available at https://is.gd/L1dUYx About The Oaks of Prairie Point Condominium Association The Oaks of Prairie Point Condominium Association is an Illinois corporation that owns and operates condominium buildings located in Lake in the Hills, Illinois, known as "The Oaks of Prairie Point Condominium". The Association sought protection under Chapter 11 of the Bankruptcy Code (Bankr. N.D. Ill. Case No. 16-80238) on Feb. 3, 2016, estimating assets and liabilities at $1 million to $10 million. Donna Smith, property manager, signed the petition. The case is assigned to Judge Thomas M. Lynch. The Debtor is represented by Thomas W. Goedert, Esq., at Crane, Heyman, Simon, Welch & Clar, in Chicago, Illinois. OCEAN RIG: Announces Reversed Stock Split ----------------------------------------- Ocean Rig UDW Inc. (NASDAQ:ORIG) said Sept. 19, 2017, that its Board of Directors has determined to effect a 1-for-9,200 reverse stock split of the Company's common shares. At the Company's annual general meeting of shareholders on April 24, 2017, the Company's shareholders approved the reverse stock split and granted the Board, or a duly constituted committee thereof, the authority to determine the exact split ratio and proceed with the reverse stock split. The reverse stock split will take effect as of 5:00 P.M., New York City time, on Sept. 21, 2017, and the Company's common stock will start trading on a split-adjusted basis on Nasdaq as of the opening of trading on September 22, 2017 under the existing trading symbol "ORIG". The new CUSIP number for the common stock following the reverse stock split will be G66964118. When the reverse stock split becomes effective, every 9,200 shares of the Company's issued common stock will be automatically combined into one share of common stock. As of the date of this press release, the Company had 82,586,851 common shares issued and outstanding. Effecting the reverse stock split will reduce the number of issued and outstanding common shares to approximately 8,976 shares (as may be adjusted due to rounding). No fractional shares will be issued in connection with the reverse split of the issued common stock. Shareholders of record who would otherwise hold a fractional share of the Company's common stock will receive a cash payment in lieu thereof at a price equal to that fraction to which the shareholder would otherwise be entitled multiplied by the closing price of the Company's common stock on Nasdaq on Sept. 21, 2017. Shareholders that hold shares through a bank, broker, or nominee shall receive cash in lieu of fractional shares, if any, determined in accordance with the policies of such bank, broker, or nominee. Such shareholders may contact their bank, broker or nominee for more information. Shareholders with shares held in certificate form will receive instructions from the Company's exchange agent, American Stock Transfer & Trust Company, LLC, for exchanging their stock certificates for a new certificate representing the shares of common stock resulting from the reverse split. Shareholders with shares held in book-entry form or through a bank, broker, or other nominee are not required to take any action and will see the impact of the reverse stock split reflected in their accounts on or after September 22, 2017. Additional information about the reverse stock split may be found in the Company's proxy statement furnished to the Securities and Exchange Commission on Form 6-K on April 3, 2017, a copy of which is available on the Commission's website at www.sec.gov. About Ocean Rig Ocean Rig UDW Inc. (NASDAQ: ORIG) -- http://www.ocean-rig.com/-- is an international offshore drilling contractor providing oilfield services for offshore oil and gas exploration, development and production drilling, and specializing in the ultra-deepwater and harsh-environment segment of the offshore drilling industry. On March 24, 2017, Ocean Rig UDW Inc., et al., filed winding up petitions with the Cayman Court and issued summonses for the appointment of joint provisional liquidators for the purpose of the Restructuring. By orders of the Cayman Court dated March 27, 2017, Simon Appell and Eleanor Fisher were appointed as the JPLs and duly authorized foreign representatives, and the Cayman Provisional Liquidation Proceedings were commenced. Simon Appell and Eleanor Fisher of AlixPartners, LLP, in their capacities, as the joint provisional liquidators and authorized foreign representatives, filed for Chapter 15 protection for Ocean Rig and its affiliates (Bankr. S.D.N.Y. Lead Case No. 17-10736) on March 27, 2017, to seek recognition of the Cayman proceedings. The JPLs' U.S. counsel are Evan C. Hollander, Esq., and Raniero D'Aversa Jr., Esq., at Orrick, Herrington & Sutcliffe LLP, in New York. * * * On Sept. 15, 2017, the Grand Court of the Cayman Islands sanctioned the schemes of arrangements of the Company and its subsidiaries, Drill Rigs Holdings Inc. ("DRH"), Drillships Financing Holding Inc. ("DFH"), and Drillships Ocean Ventures Inc., ("DOV," and together with UDW, DRH and DFH, the "Scheme Companies"). The terms of the restructuring have therefore been approved by the Cayman Court. OCEAN RIG: Cayman Court Sanctions Schemes of Arrangements --------------------------------------------------------- Ocean Rig UDW Inc., an international contractor of offshore deepwater drilling services, on Sept. 15, 2017, disclosed that the Grand Court of the Cayman Islands has sanctioned the schemes of arrangements (the "Schemes") of the Company and its subsidiaries, Drill Rigs Holdings Inc. ("DRH"), Drillships Financing Holding Inc. ("DFH"), and Drillships Ocean Ventures Inc., ("DOV," and together with UDW, DRH and DFH, the "Scheme Companies"). The terms of the restructuring have therefore been approved by the Cayman Court. The Scheme Companies have filed the sanction orders with the Registrar. Therefore, in accordance with the requirements of the Schemes, the Lodgment Date has now occurred. A hearing has been scheduled for September 20, 2017 by the U.S. Bankruptcy Court to consider the JPLs' motion (the "Enforcement Motion") for entry of an order giving full force and effect to the Schemes in the United States (the "Enforcement Order"). The deadline for filing objections to the Enforcement Motion was September 8, 2017. No objections to the Enforcement Motion are pending. The Schemes affect only financial indebtedness. Operations will continue unaffected. Trade creditors and vendors will continue to be paid in the ordinary course of business and will not be affected by any of the Schemes. Once the Restructuring Effective Date has occurred, the Scheme Companies will be substantially deleveraged through an exchange of approximately $3.7 billion principal amount of debt for (i) new equity of the Company, (ii) approximately $288 million of cash, and (iii) $450 million of new secured debt. Simon Appell on behalf of the JPLs of the Scheme Companies commented: "We have reached a key milestone in the road to completing the restructuring. We thank all stakeholders who are working hard to fulfil the final conditions of the Schemes and are really pleased that the restructuring is progressing on schedule." A copy of the Explanatory Statement, which contains the Schemes, and other relevant documentation, as well as copies of all pleadings and information regarding the Enforcement Motion, are available through the website of Prime Clerk LLC, the Scheme Companies' Information Agent at https://cases.primeclerk.com/oceanrig. About Ocean Rig Ocean Rig UDW Inc. (NASDAQ: ORIG) -- http://www.ocean-rig.com/-- is an international offshore drilling contractor providing oilfield services for offshore oil and gas exploration, development and production drilling, and specializing in the ultra-deepwater and harsh-environment segment of the offshore drilling industry. On March 24, 2017, Ocean Rig UDW Inc., et al., filed winding up petitions with the Cayman Court and issued summonses for the appointment of joint provisional liquidators for the purpose of the Restructuring. By orders of the Cayman Court dated March 27, 2017, Simon Appell and Eleanor Fisher were appointed as the JPLs and duly authorized foreign representatives, and the Cayman Provisional Liquidation Proceedings were commenced. Simon Appell and Eleanor Fisher of AlixPartners, LLP, in their capacities, as the joint provisional liquidators and authorized foreign representatives, filed for Chapter 15 protection for Ocean Rig and its affiliates (Bankr. S.D.N.Y. Lead Case No. 17-10736) on March 27, 2017, to seek recognition of the Cayman proceedings. The JPLs' U.S. counsel are Evan C. Hollander, Esq., and Raniero D'Aversa Jr., Esq., at Orrick, Herrington & Sutcliffe LLP, in New York. OCEAN RIG: Extraordinary General Meeting of Shareholders Nov. 3 --------------------------------------------------------------- Ocean Rig UDW Inc. (NASDAQ: ORIG) on Sept. 20, 2017, said it will hold an Extraordinary General Meeting of Shareholders at the Company's offices located at 3rd Floor Flagship Building, Harbour Drive, Grand Cayman, Cayman Islands on Nov. 3, 2017 at 9:00 a.m., local time. The Meeting is being held in connection with the previously announced restructuring of the Company. At the Meeting, shareholders of the Company will have the opportunity to vote on the proposals to: (i) adopt the second amended and restated memorandum and articles of association of the Company, (ii) reduce the authorized share capital of the Company and (iii) redesignate issued and unissued authorized common shares as class A common shares (which the Company believes will continue to be traded on NASDAQ under the symbol "ORIG") and class B common shares of the Company, to reduce the number of unissued authorized preferred shares of the Company and to cancel the remaining unissued authorized common shares. The Company's Board of Directors has fixed the close of business on Monday, September 25, 2017, as the record date for the determination of the shareholders entitled to receive notice and vote at the Meeting or any adjournments or postponements thereof. Formal notice of the Meeting, the Company's proxy statement and other proxy related materials are expected to be sent to shareholders on or about Thursday, Oct. 5, 2017. Investors and shareholders are urged to read the proxy materials when they become available because they will contain the proposals to be considered at the Meeting and other important information. The proxy statement will be also be furnished to the SEC on a Form 6-K and available to shareholders without charge on the SEC's website (www.sec.gov). Copies of the proxy statement can also be obtained, when available, without charge from the Company's Web site at http://www.ocean-rig.com/ About Ocean Rig Ocean Rig UDW Inc. (NASDAQ: ORIG) -- http://www.ocean-rig.com/-- is an international offshore drilling contractor providing oilfield services for offshore oil and gas exploration, development and production drilling, and specializing in the ultra-deepwater and harsh-environment segment of the offshore drilling industry. On March 24, 2017, Ocean Rig UDW Inc., et al., filed winding up petitions with the Cayman Court and issued summonses for the appointment of joint provisional liquidators for the purpose of the Restructuring. By orders of the Cayman Court dated March 27, 2017, Simon Appell and Eleanor Fisher were appointed as the JPLs and duly authorized foreign representatives, and the Cayman Provisional Liquidation Proceedings were commenced. Simon Appell and Eleanor Fisher of AlixPartners, LLP, in their capacities, as the joint provisional liquidators and authorized foreign representatives, filed for Chapter 15 protection for Ocean Rig and its affiliates (Bankr. S.D.N.Y. Lead Case No. 17-10736) on March 27, 2017, to seek recognition of the Cayman proceedings. The JPLs' U.S. counsel are Evan C. Hollander, Esq., and Raniero D'Aversa Jr., Esq., at Orrick, Herrington & Sutcliffe LLP, in New York. * * * On Sept. 15, 2017, the Grand Court of the Cayman Islands sanctioned the schemes of arrangements of the Company and its subsidiaries, Drill Rigs Holdings Inc. ("DRH"), Drillships Financing Holding Inc. ("DFH"), and Drillships Ocean Ventures Inc., ("DOV," and together with UDW, DRH and DFH, the "Scheme Companies"). The terms of the restructuring have therefore been approved by the Cayman Court. OCEAN RIG: U.S. Court Gives Full Force to Cayman Schemes -------------------------------------------------------- Ocean Rig UDW Inc. (NASDAQ:ORIG), an international contractor of offshore deepwater drilling services, said Sept. 20, 2017, that the U.S. Bankruptcy Court for the Southern District of New York has issued an order granting comity and giving full force and effect in the United States to the schemes of arrangement of the Company and its subsidiaries, Drill Rigs Holdings Inc., Drillships Financing Holding Inc., and Drillships Ocean Ventures Inc. (together, the "Scheme Companies") recently sanctioned by The Grand Court of the Cayman Islands. The terms of the restructuring approved by the Cayman Court have therefore been given effect and are enforceable in the United States. The Schemes affect only financial indebtedness. Operations will continue unaffected. Trade creditors and vendors will continue to be paid in the ordinary course of business and will not be affected by any of the Schemes. Once the Restructuring Effective Date has occurred, the Scheme Companies will be substantially deleveraged through an exchange of approximately $3.7 billion principal amount of debt for (i) new equity of the Company, (ii) approximately $288 million of cash, and (iii) $450 million of new secured debt. About Ocean Rig Ocean Rig UDW Inc. (NASDAQ: ORIG) -- http://www.ocean-rig.com/-- is an international offshore drilling contractor providing oilfield services for offshore oil and gas exploration, development and production drilling, and specializing in the ultra-deepwater and harsh-environment segment of the offshore drilling industry. On March 24, 2017, Ocean Rig UDW Inc., et al., filed winding up petitions with the Cayman Court and issued summonses for the appointment of joint provisional liquidators for the purpose of the Restructuring. By orders of the Cayman Court dated March 27, 2017, Simon Appell and Eleanor Fisher were appointed as the JPLs and duly authorized foreign representatives, and the Cayman Provisional Liquidation Proceedings were commenced. Simon Appell and Eleanor Fisher of AlixPartners, LLP, in their capacities, as the joint provisional liquidators and authorized foreign representatives, filed for Chapter 15 protection for Ocean Rig and its affiliates (Bankr. S.D.N.Y. Lead Case No. 17-10736) on March 27, 2017, to seek recognition of the Cayman proceedings. The JPLs' U.S. counsel are Evan C. Hollander, Esq., and Raniero D'Aversa Jr., Esq., at Orrick, Herrington & Sutcliffe LLP, in New York. * * * On Sept. 15, 2017, the Grand Court of the Cayman Islands sanctioned the schemes of arrangements of the Company and its subsidiaries, Drill Rigs Holdings Inc. ("DRH"), Drillships Financing Holding Inc. ("DFH"), and Drillships Ocean Ventures Inc., ("DOV," and together with UDW, DRH and DFH, the "Scheme Companies"). The terms of the restructuring have therefore been approved by the Cayman Court. ODYSSEY LOGISTICS: S&P Assigns 'B' CCR & Rates 1st Lien Debt 'B+' ----------------------------------------------------------------- Logistics and transportation solutions provider Odyssey Logistics and Technology Corp. is being acquired by The Jordan Company for a combination of debt and equity. Odyssey is issuing a first-lien facility (which comprises a $50 million revolver and a $245 million first-lien term loan) and an $85 million second-lien term loan to fund the acquisition. S&P Global Ratings thus assigned its 'B' corporate credit rating to Danbury, Conn.-based Odyssey Logistics and Technology Corp. The outlook is stable. S&P said, "At the same time, we assigned our 'B+' issue-level rating and '2' recovery rating to the company's proposed first-lien facility. The '2' recovery rating indicates our expectation for meaningful (70%-90%; rounded estimate: 75%) recovery in the event of a default. "In addition, we assigned our 'CCC+' issue-level rating and '6' recovery rating to the company's proposed $85 million second-lien term loan. The '6' recovery rating indicates our expectation for negligible (0%-10%; rounded estimate: 0%) recovery in the event of a default. "The 'B' corporate credit rating on Odyssey reflects our expectation that the company's leverage will remain high following the proposed acquisition with a debt–to-EBITDA metric of more than 6x. Odyssey competes in the large and fragmented third-party logistics industry. Companies in this sector exhibit relatively low profit margins and have varying degrees of capital intensity. Odyssey has historically grown both organically and by acquiring smaller companies, which has allowed the company to quickly expand its product offerings. "The stable outlook on Odyssey Logistics reflects our expectation that the company will benefit from its recent acquisitions and experience modest organic growth over the next 12-18 months, which we expect will be offset by slightly higher capital spending. We also believe that the company's credit metrics will stay relatively flat and remain appropriate for the current rating over the next year. "We could lower our ratings on Odyssey if the company is more aggressive than we expect in pursuing debt-financed growth opportunities or if its operating results weaken from their current levels, causing its debt-to-EBITDA to rise above 7.0x or its FFO-to-debt ratio to fall below 6%. "Although unlikely, we could raise our ratings on Odyssey over the next 12 months if the company experiences better-than-expected operating results and pursues a less aggressive financial policy, which reduces its debt-to-EBITDA below 5.0x or raises its FFO-to-debt ratio above 12%. We would also need to believe that the company's credit metrics would remain in these improved ranges going forward." OM SHANTI: Wants to Use Cash Collateral for 6 Months ---------------------------------------------------- Om Shanti Om Three, LLC, seeks authorization from the U.S. Bankruptcy Court for the Western District of Louisiana for use of the cash collateral based upon the six month cash flow projections to be filed on Sept. 6, 2017. The Federal Deposit Insurance Corporation, as Receiver for First NBC Bank, holds the first mortgage on the hotel property and what is believed to be a perfected security interest in the room rents and furniture, fixtures and equipment. The debt secured by this collateral is approximately $4,689,470. The Debtor will grant the FDIC a replacement lien on postpetition room rental income and to pay adequate protection payments. A full-text copy of the Debtor's Motion, dated Sept. 5, 2017, is available at https://is.gd/i6D7rk About Om Shanti Om Three Om Shanti Om Three, LLC, owns a 78-room hotel known as Fairfield Inn and Suites located at 1530 MLK Drive, Houma, Louisiana. The hotel provides complimentary Wi-Fi, plus a newly renovated fitness center, and an indoor heated pool. The hotel, together with all FF&E, linens, office equipment, appliances, and all other equipment and goods required to operate the hotel property, is valued at $1.5 million. Om Shanti Om Three sought protection under Chapter 11 of the Bankruptcy Code (Bankr. W.D. La. Case No. 17-20833) on Sept. 5, 2017. Nimesh Zaver, managing member, signed the petition. The Debtor disclosed $1.51 million in assets and $4.73 million in liabilities as of the bankruptcy filing. Judge Robert Summerhays presides over the case. Wade N. Kelly, Esq., represents the Debtor. ONSITE TEMP: Hearing on JRS' Disclosure Statement Set for Oct. 24 ----------------------------------------------------------------- The U.S. Bankruptcy Court for the District of Arizona is set to hold a hearing on October 24 to consider approval of the disclosure statement, which explains the Chapter 11 plan of reorganization filed by a group led by JRS Funding, LLC for Onsite Temp Housing Corp. The hearing will take place at 10:00 a.m., at Courtroom No. 601. Objections to the disclosure statement are due by October 17. On Feb. 7, 2017, the Debtor filed a Chapter 11 plan of reorganization and disclosure statement. The latest version of the Debtor's Plan, filed in August proposed that general unsecured creditors will receive payment of $300,000 under the company's latest plan to exit Chapter 11 protection. The JRS restructuring plan proposes to pay unsecured creditors 20% of their claims. These creditors will receive equal quarterly payments over five years beginning on the date which is 90 days after the effective date of the plan. About Onsite Temp Onsite Temp Housing Corporation, based in Phoenix, Arizona, provides temporary housing solutions to the insurance, construction, mining and natural disaster sectors in the form of RV travel trailers. Onsite Temp Housing filed a Chapter 11 petition (Bankr. D. Ariz. Case No. 16-10790) on Sept. 20, 2016. The petition was signed by Donald Kaebisch, authorized representative. In its petition, the Debtor estimated $500,000 to $1 million in assets and $1 million to $10 million in liabilities. The Hon. Paul Sala presides over the case. Harold E. Campbell, Esq., at Campbell & Coombs, P.C., serves as bankruptcy counsel. Timothy H. Shaffer of Clotho Corporate Recovery LLC, Morris Anderson & Associates was named chief restructuring officer. Henry and Horne, LLP, was tapped to provide financial consulting services. No official committee of unsecured creditors has been appointed in the case. OPTIMA SPECIALTY: Seeks OK of Exit Financing with DDJ Capital ------------------------------------------------------------- BankruptcyData.com reported that Optima Specialty Steel filed with the U.S. Bankruptcy Court a redacted motion to enter into an exit financing commitment letter and related fee letter with DDJ Capital Management. DDJ Capital Management, as lender, has agreed to provide exit financing at the interest rate that is LIBOR plus 10% per annum cash interest, subject to a 1% LIBOR floor (payable quarterly in arrears). The Debtors would require aggregate debt financing of $240 million to consummate their Modified Plan and provide sufficient liquidity to fund the Debtors' operations after emergence from these Chapter 11 Cases, all in the form of the Exit Facility. To the extent the Debtors' cash balances exceed $10.0 million as of the Closing Date, the commitment amount will be reduced dollar-for-dollar. The effective date of the plan of reorganization confirmed by the Court on June 29, 2017, has not occurred, and the exit financing commitment provided by GSO Capital Partners in connection with the Plan has expired. In light of the development, the Debtors have pivoted to DDJ Capital Management to sponsor an alternative plan transaction that continues to provide for a comprehensive reorganization of the Debtors. The Court scheduled a Sept. 27, 2017 hearing to consider the exit financing facility, with objections due by Sept. 26, 2017, according to the BankruptcyData.com. About Optima Specialty Steel Optima Specialty Steel Inc. and its affiliates are independent manufacturers of specialty steel products. Their manufacturing facilities are located in the United States, and each of the companies' operating units have operated in the steel industry for more than 50 years. Optima Specialty Steel and its affiliates filed Chapter 11 bankruptcy petitions on Dec. 15, 2016: Optima Specialty Steel (Bankr. D. Del. Case No. 16-12789); Niagara LaSalle Corporation (Case No. 16-12790); The Corey Steel Company (Case No. 16-12791); KES Acquisition Company (Case No. 16-12792); and Michigan Seamless Tube LLC (Case No. 16-12793). The petitions were signed by Mordechai Korf, chief executive officer. At the time of filing, Optima Specialty estimated assets and liabilities of $100 million to $500 million. The Debtors engaged Greenberg Traurig, LLP, in Wilmington, Delaware, as counsel. The Debtors tapped Ernst & Young LLP as their accountant. Garden City Group is the claims and noticing agent, and maintains the site http://cases.gardencitygroup.com/oma/info.php No request has been made for the appointment of a trustee or examiner. On Jan. 4, 2017, the U.S. Trustee for Region 3 appointed an official committee of unsecured creditors. The committee retained Squire Patton Boggs (US) LLP as its lead counsel and Whiteford, Taylor & Preston LLC as its local Delaware counsel. ORANGE ACRES: Has Until October 30 to File Chapter 11 Plan ---------------------------------------------------------- Judge Michael G. Williamson of the U.S. Bankruptcy Court for the Middle District of Florida extended the exclusive period during which only Orange Acres Ranch Homeowners Association, Inc. may propose and file plans of reorganization through October 30, 2017, as well as the exclusive period during which only the Debtor may solicit acceptances of its plan of reorganization through December 29, 2017. As reported by the Troubled Company Reporter on September 19, 2017, the Debtor asked the Court to extend its exclusive periods saying it was still working on the plan and discussing plan treatment with parties in interest. However, the planning for the hurricane and the aftermath of the hurricane have made it difficult for the Debtor to meet with financing sources and the board to discuss plan alternatives. About Orange Acres Ranch Homeowners Orange Acres Ranch Homeowners Association, Inc., is listed as a Florida Not For Profit Corporation, which owns and operates a mobile home park known as Orange Acres Ranch. The Park consists of 210 lots, including 73 unimproved lots. The Park amenities include a clubhouse and swimming pool. Orange Acres Ranch Homeowners Association filed a Chapter 11 petition (Bankr. M.D. Fla. Case No. 17-04326) on May 18, 2017. The petition was signed by Brent Geary, president. At the time of filing, the Debtor estimated assets and liabilities of $1 million to $10 million. The case is assigned to Judge Michael G. Williamson. The Debtor is represented by Scott A. Stichter, Esq., at Stichter Riedel Blain & Postler, P.A. PACKERS HOLDINGS: S&P Ups CCR to BB- on Improving Credit Measures ----------------------------------------------------------------- S&P Global Ratings notes that U.S.-based outsourced sanitation services provider Packers Holdings LLC achieved strong earnings growth, which has led the rating agency to reassess its emergence EBITDA moderately higher, resulting in improved recovery prospects. S&P is affirming its 'B' corporate credit rating on Packers Holdings LLC. The outlook is stable. S&P said, "At the same time, we raised our issue-level rating on the company's first-lien facility to 'B+' from 'B' and revised the recovery rating to '2' from '3', indicating our expectation that lenders would receive substantial recovery (70%-90%; rounded estimate: 70%) in a payment default scenario." The affirmation reflects the company's high debt leverage, financial sponsor ownership, narrow business focus on sanitation services, and customer concentration, offset by the company's leading position within its niche and focus on cost containment. Recent efforts to improve operating efficiency and ongoing new customer wins have contributed to better-than-expected earnings generation, leading to improved recovery prospects. S&P said, "We believe this improvement is sustainable and expect cash flow leverage to modestly strengthen over the next 12 months to the low-5x area. However, we believe the financial sponsor will shape the company's financial policy and capital allocation decisions which could restrict the company from achieving leverage below 5x." S&P added, "The outlook on Packers is stable. We expect continued productivity efforts, expansion into the FDA inspection plants, new business wins, and annual price increases will support continued earnings growth, debt reduction, and improving credit metrics over the next 12 months. We expect debt to EBITDA to decline to the mid-5.0x area by the end of 2017. "We could raise our ratings over the next 12 months if the company continues to apply excess cash flow toward debt reduction or generate greater-than-expected earnings such that leverage declines to below 5.0x on a sustained basis. An upgrade would also be contingent upon our expectation that the sponsor's financial policies would support the maintenance of leverage at these levels. "Although unlikely over the next year, we could lower our ratings on Packers if unforeseen circumstances, including customer losses, weakness in the protein sector, or higher-than-expected increase in input costs, result in a decline in operating performance causing debt to EBITDA to rise to 7.5x and remain there on a sustained basis. This could also occur if the company undertook a large, debt-financed acquisition or dividend." PENICK PRODUCE: Plan Filing Deadline Extended to November 22 ------------------------------------------------------------ Judge Jason D. Woodard of the U.S. Bankruptcy Court for the Northern District of Mississippi extended the time periods during which Penick Produce Company, Inc. and its debtor-affiliates retain their exclusive rights to file a plan or plans of reorganization, and solicit acceptances for the plan through and including November 22, 2017, and January 22, 2018, respectively. As reported by the Troubled Company Reporter, the Debtors said their are not presently positioned such that meaningful effort toward formulation of a plan or plans has been or is possible at this time. The Debtors said they have, nonetheless, exhibited a good faith effort to achieve progress and likewise demonstrated good cause for extending the Exclusive Periods, among others: (a) The Debtors have reached agreement with BancorpSouth Bank providing for their continued use of cash collateral as evidenced by interim and final agreed orders. The Debtors' operations have outperformed their budgeted projections. (b) The Debtors have engaged Legacy Capital as their investment banker, which has been working diligently to commence a process to entertain the varying solicitations of interest in potential transactions they have received. These processes are underway, but neither the Debtors nor Legacy Capital have had ample time at this juncture to make significant progress toward an identifiable transaction of any kind. (c) The Debtors have remained current with all post-petition obligations as they continue to work toward preparation for operations commencing in the fall for a new business year. (d) The Debtors have exchanged information with BancorpSouth Bank and the Committee in order to cooperate and collaborate on these restructuring efforts, to the extent possible and to minimize cost and distraction. (e) The Debtors have obtained approval of a claims procedure to resolve all Perishable Agricultural Commodities Act trust claims and of all other farmers that do not hold trust claims. This was the Debtors' first exclusivity extension request. The Debtors noted that there remain additional tasks that will be necessary to enable the Debtors to formulate and implement a confirmable plan, and that they believed that they can likely achieve this within the extended periods requested. Neither BancorpSouth nor the Committee had any objection to the requested extensions sought by the Debtors. About Penick Produce Company Founded in 1991, Penick Produce Co., Inc., is a small organization in the fresh fruits and vegetable companies industry located in Vardaman, Mississippi. Penick Produce, Co., and affiliates Penick Business LP and Penick LP sought protection under Chapter 11 of the Bankruptcy Code (Bankr. N.D. Miss. Lead Case No. 17-11522) on April 26, 2017. The petitions were signed by Robert A. Langston, president. At the time of the filing, Penick Produce estimated assets at $10 million to $50 million and debt at $1 million to $10 million. Judge Jason D. Woodard presides over the cases. The Debtors are represented by Douglas C. Noble, Esq., at McCraney, Montagnet, Quin & Noble, PLLC. The Debtors tapped Legacy Capital, Inc. as investment banker. An official committee of unsecured creditors was appointed by the U.S. Trustee on May 16, 2017, and modified on May 18, 2017. The committee retained the Law Office of Derek A. Henderson, as counsel. PHILADELPHIA SD: Fitch Affirms 'BB-' IDR, Outlook Stable -------------------------------------------------------- Fitch Ratings has affirmed the underlying 'BB-' rating on the following bonds issued for the school district of Philadelphia (SDP, or the district): -- $989 million Pennsylvania State Public School Building Authority school lease revenue and revenue refunding bonds issued on behalf of SDP; -- $1.8 billion school district of Philadelphia general obligation (GO) and GO refunding bonds. Fitch also affirms the district's IDR at 'BB-.' The Rating Outlook for the IDR, underlying district and authority debt is Stable. The enhanced rating of 'A+' with a Stable Outlook on the bonds reflects protections under Pennsylvania statutes outlining intercept of commonwealth aid for school districts (Pennsylvania School Credit Intercept Provision). SECURITY The bonds issued by the authority are special limited obligations of the authority. For these bonds, payments from the State Treasurer are made directly to the Trustee on the last Thursday of April and October of each year, in advance of lease rental payments due on May 15 and Nov. 15, and debt service payments on June 1 and Dec. 1. The district has covenanted that it will include in its budget appropriations for payments to the authority. For these payments, the district irrevocably has pledged its full faith, credit and taxing power. All of the authority and GO bonds are secured by protections under the Pennsylvania School Credit Enhancement Law as well as the district's full faith and credit and taxing power. SDP's underlying GO rating is based on the district's full faith and credit pledge. The rating on the GO bonds is enhanced by the Pennsylvania School Credit Enhancement Law. ANALYTICAL CONCLUSION The 'BB-' IDR reflects SDP's constrained budgetary environment with limited independent ability to materially alter its fiscal profile. The current rating level implies an elevated vulnerability to default risk, particularly in the event of adverse changes in conditions. Fitch believes that a consistent history of support from other levels of government provides a modicum of comfort that the district will continue to meet its financial obligations. Over the past several years, the district has taken multiple steps to reduce recurring spending and has worked with external stakeholders to boost revenues. But further expense reductions are likely to materially affect core service delivery; in fact, the district has taken steps to use new revenues to restore some prior year cuts to address such concerns. SDP's management is taking important steps to address these limitations. But the district's options are limited absent external cooperation, particularly from the commonwealth and city, given constraints including a challenging labor environment. Economic Resource Base Philadelphia serves as a regional economic center in the northeast, with a stable employment base weighted toward the higher education and healthcare sectors. Jobs expansion since the recession has been steady and strong, but comparatively low wealth levels and weak population increases persist and limit growth prospects. The population is estimated at 1.6 million. KEY RATING DRIVERS Revenue Framework: 'bbb' Fitch expects SDP's revenues will grow annually near the rate of inflation with key components including the property tax and subsidies from the commonwealth. SDP's lack of any material independent legal revenue-raising capability limits the revenue framework assessment. Expenditure Framework: 'bbb' Expenditure pressures are significant with debt service and charter school payments in particular driving Fitch's expectations. Fitch views charter school spending as SDP's most critical expenditure challenge, and will closely monitor progress in moderating the current growth trajectory. The labor environment also poses limitations on expenditure flexibility. Commonwealth reimbursements, which Fitch anticipates will continue, offset a significant share of pension spending. Long-Term Liability Burden: 'aa' Debt and unfunded pension liabilities present only a moderate burden on the district's economic resource base. Other post-employment benefit (OPEB) liabilities are minimal, with the district providing no healthcare benefits for retirees or dependents. Operating Performance: 'bb' The district has built up modest budgetary, cash-basis reserves in recent years with expense management and successful negotiation of revenue support from the city and commonwealth. But those reserves will likely be drawn down within several years absent structural changes in the level of support from the city and commonwealth. SDP retains very limited financial flexibility with little room for additional expenditure cuts, and would be stressed in the event of an economic downturn, absent external assistance. Both Philadelphia and Pennsylvania have previously stepped in to support the district. Fitch anticipates similar support going forward, but the timing and extent is uncertain as the city and commonwealth face their own fiscal constraints. RATING SENSITIVITIES Sustainable Revenue Improvement: SDP has successfully negotiated several revenue increases in recent years with the city and commonwealth including a permanent cigarette tax, the first $120 million of the city's 1% sales tax, and increases in the property tax rate. Establishment of a long-term revenue solution that more fully addresses the district's expenditure demands could improve Fitch's assessment of the district's revenue framework and operating performance. Shift in Charter School Expenditures: Payments to charter schools have been, and will likely continue to be, the most significant driver of the district's expenditures. A material change in the mandatory per pupil payments SDP makes to charter schools, either through changes in enrollment patterns or in the structure of the payments themselves, could alter Fitch's view of the district's expenditure growth and financial resilience. PHOTOMEDEX INC: Adjourns Annual Meeting to October 12 ----------------------------------------------------- PhotoMedex, Inc. convened its annual meeting of stockholders on Sept. 14, 2017. The Company adjourned the meeting to seek additional votes on Proposal 1, which the Company refers to in its proxy statement as the First Charter Proposal, and Proposal 2, which the Company refers to in its proxy statement as the Contribution Securities Issuance Proposal. The annual meeting will reconvene on Oct. 12, 2017, at 9:30 a.m., Eastern Standard Time, at 410 Park Avenue, 14th Floor, New York, NY 10022. About PhotoMedex PhotoMedex, Inc., is a global health products and services company providing integrated disease management and aesthetic solutions to dermatologists, professional aestheticians, ophthalmologists, optometrists, consumers and patients. The Company provides proprietary products and services that address skin conditions including psoriasis, vitiligo, acne, actinic keratosis, photo damage and unwanted hair, as well as fixed-site laser vision correction services at its LasikPlus(R) vision centers. Photomedex reported a loss of $13.26 million in 2016, compared to a loss of $34.55 million in 2015. As of June 30, 2017, Photomedex reported $17.61 million in total assets, $9.73 million in total liabilities, and $7.87 million in total stockholders' equity. Fahn Kanne & Co. Grant Thornton Israel, in Tel-Aviv, Israel, issued a "going concern" opinion on the consolidated financial statements for the year ended Dec. 31, 2016, citing that as of Dec. 31, 2016, the Company had an accumulated deficit of $115.6 million and shareholders' deficit of $1.408 million. Also, during the most recent periods the Company has incurred losses and negative cash flows from continuing operations and was forced to sell certain assets and business units to obtain additional liquidity resources to support its operations. In addition, on Jan. 23, 2017, the Company completed the sale of its consumer products division which represented the sale of substantially all of the remaining operations and assets of the Company. These conditions, along with other matters, raise substantial doubt about the Company's ability to continue as a going concern. PHOTOMEDEX INC: Reaches Settlement in 'Mouzon' Civil Case --------------------------------------------------------- Radiancy, Inc., a subsidiary of PhotoMedex, Inc., has entered into a settlement agreement and release with regard to Mouzon, et al. v. Radiancy, Inc., a civil action filed in the United States District Court for the District of Columbia. The Mouzon civil action alleged certain marketing and warranty claims against Radiancy and its President, Dolev Rafaeli, who was earlier dismissed from the suit, on behalf of a purported class of individuals who had purchased the nono! Hair removal product marketed and sold by Radiancy. The settlement also includes the potential plaintiffs under April Cantley v. Radiancy, Inc., a purported class action lawsuit originally filed in the Superior Court in the State of California, County of Kern, which was removed to the Federal Court system and consolidated with the Mouzon litigation. The terms and conditions of the Settlement Agreement are confidential. About PhotoMedex PhotoMedex, Inc., is a global health products and services company providing integrated disease management and aesthetic solutions to dermatologists, professional aestheticians, ophthalmologists, optometrists, consumers and patients. The Company provides proprietary products and services that address skin conditions including psoriasis, vitiligo, acne, actinic keratosis, photo damage and unwanted hair, as well as fixed-site laser vision correction services at its LasikPlus(R) vision centers. Photomedex reported a loss of $13.26 million for the year ended Dec. 31, 2016, compared to a loss of $34.55 million for the year ended Dec. 31, 2015. As of June 30, 2017, Photomedex had $17.61 million in total assets, $9.73 million in total liabilities and $7.87 million in total stockholders' equity. Fahn Kanne & Co. Grant Thornton Israel, in Tel-Aviv, Israel, issued a "going concern" opinion on the consolidated financial statements for the year ended Dec. 31, 2016, citing that as of Dec. 31, 2016, the Company had an accumulated deficit of $115.6 million and shareholders' deficit of $1.408 million. Also, during the most recent periods the Company has incurred losses and negative cash flows from continuing operations and was forced to sell certain assets and business units to obtain additional liquidity resources to support its operations. In addition, on Jan. 23, 2017, the Company completed the sale of its consumer products division which represented the sale of substantially all of the remaining operations and assets of the Company. These conditions, along with other matters, raise substantial doubt about the Company's ability to continue as a going concern. PLATFORM SPECIALTY: Moody's Affirms B2 Corporate Family Rating -------------------------------------------------------------- Moody's Investors Service affirmed the B2 corporate family rating and B2-PD probability of default rating of Platform Specialty Products Corporation (Platform) and changed the outlook to stable from negative. Moody's also raised the speculative grade liquidity rating to SGL-2 from SGL-3. At the same time, Moody's assigned B2 ratings to Platform Specialty Products Corporation's proposed $1.439 billion senior secured term loans that will partially refinance its existing term loans. Platform intends to refinance its $606 million USD TLB-5 and Euro 695 million EUR TLC-4 due in June 2020. As part of the transaction, the company plans to increase the size of the USD tranche by $100 million to $706 million and reduce the size of the EUR tranche by a corresponding Euro 83 million ($100 million USD equivalent) to Euro 611 million. The maturity will remain unchanged. The proposed transaction is leverage neutral and is expected to result in a modest reduction in annual interest expense. "Although leverage remains high for the B2 rating, Moody's stabilized the outlook on expectations that the company will improve free cash flow generation and use it to reduce debt and maintain good liquidity," said Anastasija Johnson, Vice President - Senior Analyst at Moody's. "This expectation does not depend on the planned separation of the agricultural chemicals business in 2018, which could be an additional credit improvement if the proceeds are applied towards debt reduction." Assignments: Issuer: MacDermid European Holdings B.V. (Co-Borrower MacDermid Funding, LLC) -- Senior Secured Bank Credit Facility, Assigned B2(LGD3) Issuer: MacDermid Incorporated (Co-Borrower Platform Specialty Products Corporation) -- Senior Secured Bank Credit Facility, Assigned B2(LGD3) Outlook Actions: Issuer: MacDermid Agricultural Solutions Holdings BV -- Outlook, Changed To Stable From Negative Issuer: MacDermid Inc. -- Outlook, Changed To Stable From Negative Issuer: Platform Specialty Products Corporation -- Outlook, Changed To Stable From Negative Issuer: MacDermid European Holdings B.V. -- Outlook, Assigned Stable Affirmations: Issuer: MacDermid Agricultural Solutions Holdings BV -- Senior Secured Bank Credit Facility, Affirmed B2(LGD3) Issuer: MacDermid European Holdings B.V. -- Senior Secured Bank Credit Facility, Affirmed B2(LGD3) Issuer: MacDermid Inc. -- Senior Secured Bank Credit Facility, Affirmed B2(LGD3) Issuer: Platform Specialty Products Corporation -- Probability of Default Rating, Affirmed B2-PD -- Corporate Family Rating, Affirmed B2 -- Senior Secured Bank Credit Facility, Affirmed B2(LGD3) -- Senior Unsecured Regular Bond/Debenture, Affirmed Caa1(LGD5) Upgrade: Issuer: Platform Specialty Products Corporation -- Speculative Grade Liquidity Rating, Upgraded to SGL-2 from SGL-3 RATINGS RATIONALE Platform's B2 CFR reflects high leverage as a result of the acquisition-driven growth strategy and projected free cash flow generation due to the asset-light business model with low capital requirements. With roughly $5.5 billion of reported debt as of June 30, 2017, Platform has a significant debt load that exceeds its sales by 1.5 times. Moody's adjustments for pensions, leases and contingent obligation related to the initial MacDermid acquisition increase debt to roughly $5.79 billion. Platform's leverage as adjusted by Moody's stood at roughly 7.4 times in the twelve months ended June 30, 2017. Given projected earnings improvement and expectations that all free cash flow will be used to repay debt, Moody's expects leverage to decline closer to 6 times in 2018. The company's free cash flow generation is supported by high margins of above 20% and low capital expenditures requirements due to the asset-light business model. The rating also reflects the company's scale, geographic, operational, product and end market diversity. The company generates about half of its sales and EBITDA from specialty chemicals used in electronics, automotive, graphic arts and offshore oil and gas production and drilling. Some of these markets are cyclical, which could impact volumes and prices. The other half of sales and EBITDA are generated from the agricultural chemicals business which is seasonal and subject to crop price volatility. Platform enjoys leading positions in several of its markets and limited exposure to volatile raw materials costs. The rating reflects the acquisition-driven growth strategy and related event, financial and integration risks. The company has announced a plan to separate the agricultural business as a public company in 2018, which could improve financial credit metrics if the proceeds of the equity raise are used to pay down debt but this strategy still carries an execution risk. In addition, both the agricultural chemical company and the remaining specialty chemical company will continue to supplement organic growth with a measured acquisition approach in existing and adjacent end-markets. Until the planned separations is completed, the rating reflects expectations that all free cash flow will be used to pay down debt and the company will not undertake any additional debt-financed acquisitions. Platform's SGL-2 speculative grade liquidity rating reflects expectations that the company will have good liquidity supported by cash on hand, availability under its revolver and projected free cash flow generation. The company had approximately $427.1 million of cash on hand, primarily held overseas. The company also has a $500 million revolving credit facility, of which $475 million has been extended through June 7, 2019, while the rest matures on June 7, 2018. This is the nearest maturity and the annual amortization payments total approximately $35 million. Approximately $1.5 billion of term loans mature in 2020. As of June 30, 2017, the company had $105 million borrowings under its revolving facility and $376 million of availability. The company relies on the revolver to fund working capital use for its agricultural chemicals business and also has local credit lines to support this business. The revolver has a financial maintenance covenant maximum first lien net leverage ratio of 6.25 times, subject to a right to cure. The company has significant headroom under the covenant and Moody's does not expects it to be triggered. The company is subject to an excess cash flow sweep, which steps down once first lien net leverage falls below certain thresholds. Platform does not pay cash dividends, but its Series A Preferred Stock may pay dividends in the form of common stock, although those payments are only triggered if the stock rises above $23. The stable ratings outlook reflects expectations that the company will continue to generate free cash flow, use it to reduce debt and lower leverage closer to 6 times in 2018. The stable outlook also reflects expectations that the company will refrain from any debt-financed acquisitions. There is limited upside to the rating at this time, given the high leverage and uncertainty related to the separation of the agricultural chemicals business and execution risk. The ratings could be upgraded if leverage falls below 5.0x on a sustained basis and the company demonstrates its ability to grow its sales and generate significant free cash flow of close to $300 million. Platform's ratings could be downgraded if free cash flow turns negative and liquidity falls below $200 million, or if the company fails to reduce leverage below 6.5x on a sustained basis. The ratings could also be downgraded if the company undertakes another large-debt financed acquisition. Headquartered in West Palm Beach, Florida, Platform Specialty Products Corporation is a publicly-traded company founded by investors Martin Franklin and Nicolas Berggruen in 2013. Platform's first acquisition in 2013 was MacDermid Holdings, LLC, a global manufacturer of variety of chemicals and technical services for a range of applications and markets including; metal and plastic finishing, electronics, graphic arts, and offshore drilling. Platform acquired Alent plc, OM Group businesses, Arysta LifeScience Limited, Chemtura Corporation's AgroSolutions business, and Belgium-based Group Agriphar Group agricultural chemical business, in levered transactions valued at roughly $2.0 billion, $365 million, $3.51 billion, $1 billion and $405 million, respectively. Platform's sales were $3.6 billion for the twelve months ended June 30, 2017. The principal methodology used in these ratings was Global Chemical Industry Rating Methodology published in December 2013. PLY GEM: S&P Affirms 'B+' CCR & Hikes Rating on $650MM Notes to B+ ------------------------------------------------------------------ S&P Global Ratings affirmed its 'B+' corporate credit rating on Ply Gem Industries Inc. The outlook is stable. S&P noted that Cary, N.C.-based Ply Gem Industries Inc. has maintained relatively stable profit margins over the past year. Following voluntary prepayments on its term loan, and additional amortization on the loan, the company reduced its adjusted leverage to 3.8x as of July 1, 2017. S&P said, "At the same time, we raised our issue-level rating on Ply Gem's $650 million senior unsecured notes due 2022 to 'B+' from 'B' and revised our recovery rating on the notes to '4' from '5'. The '4' recovery rating indicates our expectation for average (30%-50%; rounded estimate: 45%) recovery for noteholders in the event of a payment default. "Additionally, we affirmed our 'BB' issue-level rating on Ply Gem's $430 million term loan due 2021. The '1' recovery rating remains unchanged, indicating our expectation for very high (90%-100%; rounded estimate: 95%) recovery in the event of a payment default. "Our corporate credit rating on Ply Gem reflects the company's strong market position in both of its segments and the rapid reduction in its leverage over the past three years. For the trailing 12 months ended July 1, 2017, Ply Gem's adjusted debt-to-EBITDA (including our adjustments for operating leases and postretirement obligations) was approximately 3.8x, which compares with 4.4x during the same quarter in 2016. "The stable outlook on Ply Gem reflects our belief that the company will continue to experience modest sales growth and margin improvement through 2018 due to its pricing, product mix, and positive trends in the new home construction and repair and remodel end markets. Therefore, we expect its adjusted leverage to remain below 4x over the next 12 months with adjusted EBITDA surpassing $300 million by 2019. "We could lower our ratings on Ply Gem if the company's leverage approaches 5x over the next 12 months. This could occur due to an unexpected contraction in new home construction, weakness in the company's pricing, or spikes in its commodity costs such that revenue drops at least 10% and EBITDA margins decline by more than 200 basis points (bps) from our current assumption over the next 12 months. While we consider it less likely we could lower the rating if its liquidity becomes constrained to the point where coverage of uses drops below 1.2x. "We view an upgrade as unlikely over the next 12 months. In order to upgrade Ply Gem we would need management to affirm that it is committed to maintaining leverage of less 4x going forward and its financial sponsor owners would likely need to relinquish their control over the intermediate term." PRECIPIO INC: Mark Rimer Holds 20% Equity Stake as of Sept. 18 -------------------------------------------------------------- Mark Rimer is the beneficial owner of 1,840,641 shares of common stock of Precipio, Inc., as of Sept. 18, 2017, constituting 20 percent of the shares outstanding, as disclosed in an amended Schedule 13D filed with the Securities and Exchange Commission. The Shares reported consist of: (i) 686,874 shares of Common Stock held by Chenies Investor LLC; (ii) 340,913 shares of Common Stock held by Chenies Management LLC; (iii) 124,496 shares of Common Stock held by Kuzven Precipio Investor LLC (iv) 4,179 shares of Common Stock held by Precipio Employee Holdings; (v) warrants to purchase 215,916 shares of Common Stock held by Kuzven Precipio Investor LLC; (vi) warrants to purchase 175,390 shares of Common Stock held by Chenies Investor LLC; (vii) warrant to purchase 29,541 shares of Common Stock held by Chenies Management LLC; and (viii) option to purchase 263,332 shares of Common Stock or Series A Senior Convertible Preferred Stock held by Kuzven Precipio Investor LLC. Chenies Investor LLC is the beneficial owner of 862,264 shares of Common Stock consisting of: (i) 686,874 shares of Common Stock; and (ii) warrants to purchase 175,390 shares of Common Stock as of Sept. 18, 2017. Chenies Investor LLC and Chenies Management LLC entered into conversion agreements with the Company on Aug. 28, 2017, pursuant to which (i) the Chenies Parties agreed to convert all outstanding shares of Series A Senior Convertible Preferred Stock, including all dividends due and payable thereunder, into an aggregate of 236,986 shares of Common Stock at a conversion rate of 1-for-1 and (ii) the Company issued to the Chenies Parties an aggregate of 116,955 warrants to purchase Common Stock as consideration for entering into the Conversion, which number is equal to 50% of the number of shares of Common Stock received in connection with the Conversion, excluding accrued dividends. The Conversion Warrants have a per share exercise price of $10.00, are exercisable immediately and expire five years from the date of issuance. On Sept. 6, 2017, Dominion Capital LLC exercised a put option to sell $311,241 of principal of an 8% Convertible Promissory Note to Kuzven Precipio Investor LLC. A related call option held by Kuzven Precipio Investor LLC on the Dominion Note expired upon the exercise of the Dominion Put. Pursuant to a Conversion Agreement between Kuzven Precipio Investor LLC and the Company, dated Sept. 8, 2017, the portion of the note sold to Kuzven was converted into (i) 124,496 shares of Issuer Common Stock at a conversion price of $2.50 per share and (ii) an Offering Warrant exercisable for 124,496 shares of Issuer Common Stock. Pursuant to a Conversion Agreement between Chenies Investor LLC and the Company, dated Sept. 8, 2017, the 8% Convertible Promissory Note together with accrued interest and the Redemption Amount was converted into (i) 85,476 shares of Common Stock at a conversion price of $2.50 per share and (ii) an Offering Warrant exercisable for 85,476 shares of Common Stock. A full-text copy of the regulatory filing is available at: https://is.gd/JEab42 About Precipio Formerly known as Transgenomic, Inc., Precipio, Inc. -- http://www.precipiodx.com/-- has built a platform designed to eradicate the problem of misdiagnosis by harnessing the intellect, expertise and technology developed within academic institutions, and delivering quality diagnostic information to physicians and their patients worldwide. Through its collaborations with world-class academic institutions specializing in cancer research, diagnostics and treatment, Precipio offers a new standard of diagnostic accuracy enabling the highest level of patient care. Transgenomic reported a net loss available to common stockholders of $8 million on $1.55 million of net sales for the year ended Dec. 31, 2016, compared with a net loss available to common stockholders of $34.27 million on $1.92 million of net sales for the year ended Dec. 31, 2015. As of June 30, 2017, Precipio had $37.01 million in total assets, $17.24 million in total liabilities and $19.76 million in total stockholders' equity. Marcum LLP, in Hartford, CT, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2016, stating that the Company has incurred operating losses and used cash for operating activities for the past several years. This raises substantial doubt about the Company's ability to continue as a going concern. PRECISION CASTPARTS: Egan-Jones Assigns 'B' Unsec. Debt Ratings --------------------------------------------------------------- Egan-Jones Ratings Company, on July 18, 2017, assigned B local currency and foreign currency senior unsecured ratings on debt issued by Precision Castparts Corp. EJR also assigned B ratings on commercial paper issued by the Company. Precision Castparts Corp. is an American industrial goods and metal fabrication company that manufactures investment castings, forged components, and airfoil castings for use in the aerospace, industrial gas turbine, and defense industries. PRESCRIPTIONS PLUS: Claims in Chapter 727 Case Due Dec. 20 ---------------------------------------------------------- Prescriptions Plus, Inc., filed on Aug. 22, 2017, a petition commencing an assignment for the benefit of creditors pursuant to Chapter 727, Florida Statutes, to Ross R. Hartog. Prescriptions Plus has its principal place of business at 942 Clint Moore Road, Boca Raton, FL 33487. Ross R. Hartog, as the Assignee, may be reached at: Ross R. Hartog 101 NE Third Avenue, Suite 1210 Fort Lauderdale, FL 33301 Pursuant to Section 727.105, Florida Statutes: (a) proceedings may not be commenced against the Assignee except as provided in Chapter 727, Florida Statutes, and (b) except in the case of a consensual lienholder enforcing its rights in collateral, there shall be no levy, execution, attachment, or the like in the respect of any judgment against assets of the estate, other than real property, in the possession, custody, or control of the Assignee. To receive any dividend in this proceeding, parties-in-interest must file a proof of claim with the Assignee on or before December 20, 2017. The Assignee is represented by: GRACE E. ROBSON, Esq. MARKOWITZ, RINGEL, TRUSTY & HARTOG, P.A. 101 NE Third Avenue, Suite 1210 Fort Lauderdale, Florida 33301 Tel: (954) 767-0030 Fax: (954) 767-0035 E-mail: litservice@mrthlaw.com grobson@mrthlaw.com The case is, In re: ASSIGNMENT FOR THE BENEFIT OF CREDITORS OF PRESCRIPTIONS PLUS, INC., a Florida corporation, Assignor, To: ROSS R. HARTOG, Assignee, Case No. 17-CA-009482-XXXX-MB, in the Circuit Court of the 15th Judicial Circuit in and for Palm Beach County, Florida. PRIME GLOBAL: Incurs US$41,400 Net Loss in Third Quarter -------------------------------------------------------- Prime Global Capital Group Incorporated filed with the Securities and Exchange Commission its quarterly report on Form 10-Q reporting a net loss of US$41,437 on US$288,680 of net total revenues for the three months ended July 31, 2017, compared to a net loss of US$219,990 on US$436,462 of net total revenues for the three months ended July 31, 2016. For the nine months ended July 31, 2017, Prime Global reported a net loss of US$497,185 on US$914,452 of net total revenues compared to a net loss of US$485,415 on US$1.28 million of net total revenues for the same period during the prior year. As of July 31, 2017, Prime Global had US$44.04 million in total assets, US$16.63 million in total liabilities and US$27.41 million in total equity. As of July 31, 2017, the Company had cash and cash equivalents of US$175,504, as compared to US$331,587 as of the same period last year. Its cash and cash equivalents decreased as a result of cash used in operation. "We expect to incur significantly greater expenses in the near future, including the contractual obligations that we have assumed ... to begin development activities. We also expect our general and administrative expenses to increase as we expand our finance and administrative staff, add infrastructure, and incur additional costs related to being a large accelerated filer, including directors' and officers' insurance and increased professional fees. "We have never paid dividends on our Common Stock. Our present policy is to apply cash to investments in product development, acquisitions or expansion; consequently, we do not expect to pay dividends on Common Stock in the foreseeable future," said the Company in the report. "Our continuation as a going concern is dependent upon improving our profitability and the continuing financial support from our stockholders. Our sources of capital in the past have included the sale of equity securities, which include common stock sold in private transactions and public offerings, capital leases and short-term and long-term debts. While we believe that we will obtain external financing and the existing shareholders will continue to provide the additional cash to meet our obligations as they become due, there can be no assurance that we will be able to raise such additional capital resources on satisfactory terms. We believe that our current cash and other sources of liquidity discussed below are adequate to support operations for at least the next 12 months." A full-text copy of the Form 10-Q is available for free at: https://is.gd/zLpQ89 About Prime Global Kuala Lumpur, Malaysia-based Prime Global Capital Group Inc (OTCBB:PGCG), through its subsidiaries, is engaged in the operation of a durian plantation, leasing and development of the operation of an oil palm plantation, commercial and residential real estate properties in Malaysia. Prime Global reported a net loss of US$911,522 for the year ended Oct. 31, 2016, compared to a net loss of US$1.59 million for the year ended Oct. 31, 2015. Centurion ZD CPA Limited, in Hong Kong, China, issued a "going concern" qualification on the consolidated financial statements for the year ended Oct. 31, 2016, citing that the Company has a working capital deficiency, accumulated deficit from recurring net losses and significant short-term debt obligations maturing in less than one year as of Oct. 31, 2016. All these factors raise substantial doubt about its ability to continue as a going concern. PRODUCTION PATTERN: Case Summary & 20 Largest Unsecured Creditors ----------------------------------------------------------------- Debtor: Production Pattern and Foundry Co., Inc. P.O. Box 22360 Carson City, NV 89721 Type of Business: Production Pattern Foundry, Inc. is a TS-16949 Certified, casting foundry, producing aluminum castings for a wide variety of industries. PPF produces parts and equipment components for a broad spectrum of markets -- from chip-making equipment to drinking fountains. Typical PPF customer applications have included: housings mounting bases, manifolds, valve bodies, door hinges and brackets. The Company also has experience in heavy truck manufacturing, semiconductor chip manufacturing equipment, medical and dental equipment manufacturing, construction, utility, packaging machinery and sports equipment industries. Web site: http://www.ppfco.com/ Case No.: 17-51106 Chapter 11 Petition Date: September 20, 2017 Court: United States Bankruptcy Court District of Nevada (Reno) Judge: Hon. Bruce T. Beesley Debtor's Counsel: Chris D Nichols, Esq. MINDEN LAWYERS, LLC P.O. Box 2860 990 Ironwood Drive, Ste 300 Minden, NV 89423 Tel: (775) 782 7171 Fax: (775) 782-3081 E-mail: nichols@mindenlawyers.com pam@mindenlawyers.com Estimated Assets: $10 million to $50 million Estimated Debts: $10 million to $50 million The petition was signed by Arlene Cochran, president. A full-text copy of the petition is available for free at: http://bankrupt.com/misc/nvb17-51106.pdf Debtor's List of 20 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Bank of the West Credit Card $20,611 Purchases Capital One Bank Credit Card $20,286 Purchases Cass Judgment $917,203 2730 Peralta Street Oakland, CA 94607 Castle Metals Goods/Services $13,396 CMTA-GMPP & Allied Worker Pension Pension Plan $34,362 Custom Alloy Light Metals Goods/Services $1,483,708 Federal Express Charge Account $66,097 First National Bank of Omaha Credit Card $11,342 Purchases Hometown Health Insurance $51,617 Premium Horspool & Romine Goods/Services $7,209 Mfg., Co., Inc. Kacee Company Note Payable $445,670 3570 Hiawatha Way Antelope, CA 95843 Kacee Company Goods/Services $351,122 3570 Hiawatha Way Antelope, CA 95843 Lyon County Clerk & Treasurer Goods/Services $10,648 Magma Foundry Goods/Services $9,132 Technologies, Inc. Mutual of Omaha Credit Card $10,695 Purchases PDM Steel Service Goods/Services $11,498 Centers, Inc. Pilot Thomas Logistics Goods/Services $8,614 R.S. Hughes Company, Inc. Goods/Services $7,394 Scott Sales Co. Goods/Services $17,861 Southwest Credit Card Credit Card $33,254 Purchases PUERTO RICO: Objects to COFINA Agent Bid for Sec. 2125 Protection ----------------------------------------------------------------- BankruptcyData.com reported that the Commonwealth of Puerto Rico and The Bank of New York Mellon filed with the U.S. Bankruptcy Court separate objections to the motion of Bettina Whyte, the COFINA agent, for an order (i) confirming that 48 U.S.C. Section 2125 applies to the COFINA agent; (ii) confirming retention of local counsel and (iii) clarifying payment of fees and expenses of the COFINA agent and her professionals. The Debtors assert, "The Oversight Board believes the COFINA Agent and Commonwealth Agent (collectively, the 'Agents') should only receive the protections of PROMESA section 105 for acts within their respective scope of authority, and objects to the extent any protections would extend to acts outside such scope of authority. Indeed, it appears the COFINA Agent intends to exceed the scope of her authority. Her application to retain a financial advisor [ECF No. 1273] explains the advisor is needed to analyze the Commonwealth fiscal plan. The COFINA Agent was appointed and authorized to resolve a wholly legal dispute, namely whether the Commonwealth or COFINA owns certain sales and use taxes. The COFINA Agent is not authorized to do anything else. Accordingly, any protection granted by PROMESA section 105 for acts performed by the Agents should be limited to those performed within the scope of authority granted by the Stipulation and Order. The Agents should not receive any protection for acts that exceed their authorized scope, and all rights and remedies of the Oversight Board and the Debtors should be fully preserved with respect thereto." About Puerto Rico Puerto Rico is a self-governing commonwealth in association with the United States that's facing a massive bond debt of $70 billion, a 68% debt-to-GDP ratio and negative economic growth in nine of the last 10 years. The Commonwealth of Puerto Rico has sought bankruptcy protection, aiming to restructure its massive $74 billion debt-load and $49 billion in pension obligations. The debt restructuring petition was filed by Puerto Rico's financial oversight board in U.S. District Court in Puerto Rico (Case No. 17-01578) on May 3, 2017, and was made under Title III of 2016's U.S. Congressional rescue law known as the Puerto Rico Oversight, Management, and Economic Stability Act ("PROMESA"). The Financial Oversight and Management Board later commenced Title III cases for the Puerto Rico Sales Tax Financing Corporation (COFINA) on May 5, 2017, and the Employees Retirement System (ERS) and the Puerto Rico Highways and Transportation Authority (HTA) on May 21, 2017. On July 2, 2017, a Title III case was commenced for the Puerto Rico Electric Power Authority ("PREPA"). U.S. Chief Justice John Roberts has appointed U.S. District Judge Laura Taylor Swain to oversee the Title III cases. The Honorable Judith Dein, a United States Magistrate Judge for the District of Massachusetts, has been designated to preside over matters that may be referred to her by Judge Swain, including discovery disputes, and management of other pretrial proceedings. Joint administration of the Title III cases, under Lead Case No. 17-3283, was granted on June 29, 2017. The Oversight Board has hired as advisors, Proskauer Rose LLP and O'Neill & Borges LLC as legal counsel, McKinsey & Co. as strategic consultant, Citigroup Global Markets, as municipal investment banker, and Ernst & Young, as financial advisor. Martin J. Bienenstock, Esq., Scott K. Rutsky, Esq., and Philip M. Abelson, Esq., of Proskauer Rose; and Hermann D. Bauer, Esq., at O'Neill & Borges are onboard as attorneys. McKinsey & Co. is the Board's strategic consultant, Ernst & Young is the Board's financial advisor, and Citigroup Global Markets Inc. is the Board's municipal investment banker. Prime Clerk LLC is the claims and noticing agent. Prime Clerk maintains a case web site at: https://cases.primeclerk.com/puertorico Epiq Bankruptcy Solutions LLC is the service agent for ERS, HTA, and PREPA. O'Melveny & Myers LLP is counsel to the Commonwealth's Puerto Rico Fiscal Agency and Financial Advisory Authority (AAFAF), the agency responsible for negotiations with bondholders. The Oversight Board named Professor Nancy B. Rapoport as fee examiner and to chair a committee to review professionals' fees. Bondholders' Attorneys Toro, Colon, Mullet, Rivera & Sifre, P.S.C. and Kramer Levin Naftalis & Frankel LLP serve as counsel to the Mutual Fund Group, comprised of mutual funds managed by Oppenheimer Funds, Inc., Franklin Advisers, Inc., and the First Puerto Rico Family of Funds, which collectively hold over $3.5 billion in COFINA Bonds and over $2.9 billion in other bonds issued by Puerto Rico and other instrumentalities, including over $1.8 billion of Puerto Rico general obligation bonds ("GO Bonds"). White & Case LLP and Lopez Sanchez & Pirillo LLC represent the UBS Family of Funds and the Puerto Rico Family of Funds, which hold $613.3 million in COFINA bonds. Paul, Weiss, Rifkind, Wharton & Garrison LLP, Robbins, Russell, Englert, Orseck, Untereiner & Sauber LLP, and Jimenez, Graffam & Lausell are co-counsel to the ad hoc group of General Obligation Bondholders, comprised of Aurelius Capital Management, LP, Autonomy Capital (Jersey) LP, FCO Advisors LP, Franklin Mutual Advisers LLC, Monarch Alternative Capital LP, Senator Investment Group LP, and Stone Lion Capital Partners L.P. Quinn Emanuel Urquhart & Sullivan, LLP and Reichard & Escalera are co-counsel to the ad hoc coalition of holders of senior bonds issued by COFINA, comprised of at least 30 institutional holders, including Canyon Capital Advisors LLC and Varde Investment Partners, L.P. Correa Acevedo & Abesada Law Offices, P.S.C., is counsel to Canyon Capital Advisors, LLC, River Canyon Fund Management, LLC, Davidson Kempner Capital Management LP, OZ Management, LP, and OZ Management II LP (the QTCB Noteholder Group). Committees The U.S. Trustee formed a nine-member Official Committee of Retirees and a seven-member Official Committee of Unsecured Creditors of the Commonwealth. The Retiree Committee tapped Jenner & Block LLP and Bennazar, Garcia & Milian, C.S.P., as its attorneys. The Creditors Committee tapped Paul Hastings LLP and O'Neill & Gilmore LLC as counsel. Q & D INC: Hires Timothy Zearfoss as Bankruptcy Counsel ------------------------------------------------------- Q & D, Inc. t/a Lamplighter Tavern seeks approval from the US Bankruptcy Court for the Eastern District Of Pennsylvania to employ Timothy Zearfoss, Esq., as attorney to represent the Debtor in its chapter 11 case. The Debtor proposes to pay the counsel on an hourly billable rate of $250.00 for legal services rendered out of court and an hourly billable rate of $300.00 for legal services rendered in court. Timothy Zearfoss, Esq., attests that he is an otherwise disinterested person and represents no interest adverse to Q & D, Inc. or to the bankruptcy estate. The Attorney can be reached through: Timothy Zearfoss, Esq. LAW OFFICE OF TIMOTHY ZEARFOSS 143-145 Long Lane Upper Darby, PA 19082 Tel: 610-734-7001 Email: tzearfoss@aol.com About Q & D, Inc. Based in Delaware, Pennsylvania, Q & D, Inc. filed a chapter 11 petition (Bankr. E.D. Pa. Case No. 17-16064) on September 7, 2017. The Debtor is represented by Timothy Zearfoss, Esq. At the time of filing, the Debtor estimated $0 to $50,000 in assets and liabilities. QEP RESOURCES: Egan-Jones Hikes Sr. Unsec. Debt Ratings to B+ ------------------------------------------------------------- Egan-Jones Ratings Company, on July 25, 2017, raised the senior unsecured ratings on debt issued by QEP Resources Inc. to B+ from B. QEP Resources, Inc. (QEP) is a holding company with two subsidiaries, QEP Energy Company and QEP Marketing Company, which are engaged in two primary lines of business: oil and gas exploration and production (QEP Energy), and oil and gas marketing, operation of a gas gathering system and an underground gas storage facility, and corporate activities (QEP Marketing and Other). RENTECH INC: Egan-Jones Cuts Sr. Unsecured Ratings to CC -------------------------------------------------------- Egan-Jones Ratings Company, on July 13, 2017, lowered the senior unsecured ratings on debt issued by Rentech Inc. to CC from CCC-. Rentech, Inc. is a Los Angeles, California, based United States company that owns and operates wood fiber processing and nitrogen fertilizer manufacturing businesses. ROCK ELITE: Wants Exclusive Plan Filing Deadline Moved to Jan. 8 ---------------------------------------------------------------- Rock Elite Fitness, LLC, asks the U.S. Bankruptcy Court for the Southern District of Florida to extend the Debtor's exclusive period to file a plan of reorganization through and including Jan. 8, 2018, and extending the exclusive period to solicit acceptances of its plan of reorganization for 60 days thereafter, to March 9, 2018. Absent an extension, the Debtor's plan exclusivity period expires on Oct. 10, 2017. The Debtor notes that the deadline for creditors in this case to file proofs of claim is Oct. 30, 2017. Accordingly, the Debtor requests that the exclusivity deadline be extended so all claims may be filed prior to the Debtor being required to propose a plan of reorganization. The Debtor assures the Court that it is not seeking this extension to delay the administration of the case or to pressure creditors to accept an unsatisfactory plan. To the contrary, the requested extension to the Exclusive Periods will permit the Debtor to move forward in an orderly, efficient and cost effective manner to maximize the value of the Debtor's assets. Headquartered in West Palm Beach, Florida, Rock Elite Fitness, LLC, filed for Chapter 11 bankruptcy protection (Bankr. S.D. Fla. Case No. 17-17314) on June 12, 2017, estimating its assets at up to $50,000 and its liabilities at between $100,001 and $500,000. Dana L. Kaplan, Esq., at Kelley & Fulton, PL, serves as the Debtor's bankruptcy counsel. ROOT9B HOLDINGS: Creditors Demand Repayment of $1.37M Notes ----------------------------------------------------------- root9 Holdings, Inc., received on Sept. 15, 2017, a notice from certain of its creditors stating that the Company had violated certain covenant under a purchase agreement and demanding the immediate repayment of all outstanding amounts due under the Notes. As previously disclosed, root9 Holdings issued a series of unsecured convertible promissory notes to accredited investors pursuant to a Securities Purchase Agreement, dated Oct. 23, 2014, by and among the Company and certain creditors. The aggregate value of the unpaid principal amount of the Notes, was $1,375,000 as of Sept. 15, 2017. The Notes are subordinate to the secured creditors who, as previously disclosed, intend to sell substantially all of the assets of the Company at an auction to conclude Sept. 28, 2017. The Company said it currently does not have the working capital available to satisfy the demand for repayment of these Notes. About Root9B Holdings root9B Holdings (OTCQB: RTNB) -- http://www.root9bholdings.com/-- is a provider of Cybersecurity and Regulatory Risk Mitigation Services. Through its wholly owned subsidiaries root9B and IPSA International, the Company delivers results that improve productivity, mitigate risk and maximize profits. Its clients range in size from Fortune 100 companies to mid-sized and owner-managed businesses across a broad range of industries including local, state and government agencies. Root9B Technologies, Inc., changed its name to root9B Holdings, Inc., effective Dec. 5, 2016, and relocated its corporate headquarters from Charlotte, NC, to the current headquarters of root9B, its wholly owned cybersecurity subsidiary, in Colorado Springs, CO. Root9B reported a net loss of $30.48 million for the year ended Dec. 31, 2016, following a net loss of $8.33 million for the year ended Dec. 31, 2015. As of March 31, 2017, Root9B Holdings had $16.84 million in total assets, $15.80 million in total liabilities, and $1.03 million in total stockholders' equity. Cherry Bekaert LLP, in Charlotte, North Carolina, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2016, noting that Company has suffered recurring losses from operations and has negative operating cash flows and will require additional financing to fund the continued operations. The availability of such financing cannot be assured. These conditions raise substantial doubt about its ability to continue as a going concern, the auditors said. SIXTY SIXTY CONDO: Needs Short Extension to Close Deal, File Plan ----------------------------------------------------------------- Sixty Sixty Condominium Association, Inc., filed with the U.S. Bankruptcy Court for the Southern District of Florida an Agreed Motion seeking an extension -- through September 25, 2017 -- of the Debtor's exclusive period to file a revised Chapter 11 edit plan. The Schecher Group, Inc. and owners of approximately 70 residential units agreed to the filing of the Motion. The Debtor seeks an extension as the parties await documentation of the Settlement Agreement with Schecher Group, Inc. On September 15, 2017, the Debtor, Schecher Group, the Residential Unit Owners and Marc Realty Capital, LLC, the Buyer of the Debtor's assets, participated in a judicial settlement conference facilitated by the Hon. Judge Paul Hyman. During the Settlement Conference, the Parties reached an agreement related specifically to and conditioned upon a closing of the Marc Realty Contract as approved by the Court. Currently, the Parties are in the process of working diligently to document the terms of the settlement insofar as the Closing. Furthermore, the Schecher Group and Marc Realty must separately reach a final agreement as to terms and conditions under which the remaining amount of assumed liabilities of the Schecher Group claims will be satisfied post-Closing. Accordingly, the Parties request for a short extension of time in order to allow the Debtor an opportunity to integrate the terms of the settlement agreement as it pertains to the Closing into its Second Amended Plan. About Sixty Sixty Condominium Sixty Sixty Condominium is a mixed-use hotel/residential building located at 6060 Indian Creek Drive in Miami Beach, Florida. Sixty Sixty Condominium Association, Inc., a non-profit corporation, is responsible for, among other things, the management, operation, and maintenance of the Condominium's "Common Elements", and other obligations imposed by state statute. Sixty Sixty Condominium Association, Inc., filed a Chapter 11 bankruptcy petition (Bankr. S.D. Fla. Case No. 16-26187) on December 5, 2016, listing $100,000 to $500,000 in total assets, and $1 million to $10 million in liabilities. The petition was signed by Maria Velez, president of the Board of Directors. The Hon. Robert A. Mark presides over the case. Brett D. Lieberman, Esq., at Messana, P.A., represents the Debtor as counsel. Juda Eskew & Associates, PA, serves as the Debtor's accountant. An official committee of unsecured creditors has not been appointed in the Chapter 11 case. STOLLINGS TRUCKING: Committee Says Info in Plan Outline Inadequate ------------------------------------------------------------------ The Official Committee of Unsecured Creditors of Stollings Trucking Company, Inc., filed with the U.S. Bankruptcy Court for the Southern District of West Virginia an objection to the Debtor's disclosure statement referring to the Debtor's Chapter 11 plan. The Committee understands that several of the matters contained in the Disclosure Statement are subject to litigation that is not complete and cannot be valued at the present time. The Committee does not support approval of the Disclosure Statement in its present form, until those matters can be quantified and a complete and accurate liquidation analysis is provided. The Committee says that without a meaningful liquidation analysis, the unsecured creditors will be unable to compare the liquidation options and unable to determine whether the proposed plan is in the best interest of unsecured creditors. According to the Committee, a disclosure statement should: a. include the identity and fair market value of all the Debtor's assets. The Debtor's schedules provided a list of 47 items of equipment and vehicles. The Disclosure Statement contains a list of the 43 items of equipment and vehicles that it intends to liquidate. The Court has approved the sale of 8 items of equipment, but the Debtor has only filed one report of sale during the case. This cause of this discrepancy is not apparent from the record. The Debtor also has motions to sell another six items that are pending before the Court. The Disclosure Statement should provide more information regarding (1) the items owned by the Debtor on the petition date, (2) an accounting of the items that have been sold or approved for sale, and (3) the equipment that remains to be sold. The identity and value of assets sold and assets remaining to be sold is necessary for creditors and the Court to understand the Debtor's financial condition and evaluate the liquidation analysis; b. does not provide adequate information regarding the terms of the Trust agreement. It does not contain a summary of the Trust, it does not describe the specific assets to be included in the Trust liquidated pursuant to the trust agreement. It does not state what assets (if any) will be retained by the Debtor and the proposed disposition of those assets. In addition, there is no information regarding the costs of administering the Trust, including the cost of the Trustee and professionals that the trustee may employ, which expenses are necessary for a meaningful liquidation analysis; c. mentions three causes of action that the Debtor is currently pursuing and which may generate recoveries for the estate, involving XL Insurance and Continuum Coal/GS Energy. But there is inadequate information regarding the status of the litigation, the optimal and likely outcomes for the Debtor, which is necessary for creditors to evaluate the potential outcomes of the litigation and the potential distribution to creditors; d. mentions pending litigation before the WV Surface Mine Board regarding an over-bonded haul road permit and anticipates a ruling favorable to the Debtor. However, there is not adequate information regarding the ultimate benefit to the Debtor in the event of a favorable ruling, or and the ultimate disadvantage to the Debtor in the event of an unfavorable ruling. In particular, the Disclosure Statement does not provide information as to how whether a favorable ruling will affect the distribution to creditors; e. contains no information regarding leasehold interest, value, or disposition of a coal lease with Pioneer/ Blackhawk/Robin Land Company in this case. In addition, the Disclosure Statement and Plan do not state whether the Debtor intends to assume or reject the lease; and f. does not describe the conditions necessary for the release of bonds and recovery of cash deposits, and who will be responsible for meeting those conditions, performing reclamation, and securing release of the funds. The Debtor has on deposit $1,800,000 in CDs that secure the mining reclamation bonds posted by the Debtor, which is a significant asset of the estate. Moreover, the Disclosure Statement does not provide any information whether the Debtor is currently in compliance with ongoing environmental and reclamation requirements. In fact, the Disclosure Statement indicates the Debtor will continue reclamation work so the permits will enable the bond releases, but the Debtor has indicated it is liquidating all of its equipment since it is not needed for reclamation. A copy of the Objection is available at: http://bankrupt.com/misc/wvsb15-20624-415.pdf The Committee is represented by: Douglas A. Kilmer, Esq. 14 Stonecove Road Charleston WV 25309 Tel: (304) 552-2969 E-mail: dougkilmerlaw@gmail.com About Stollings Trucking Stollings Trucking Company, Inc., began its operations in 1990. Throughout the years, the Debtor both hauled coal and mined coal for its own profit. As it grew, it acquired more equipment and rolling stock. Stollings also obtained mining permits on property in Logan County, West Virginia, and was a party to coal leases. Stollings Trucking sought protection under Chapter 11 of the Bankruptcy Code (Bankr. S.D. W.Va. Case No. 15-20624) on Dec. 7, 2015. Rhonda Marcum, president, signed the petition. At the time of the filing, the Debtor estimated assets and liabilities of $1 million to $10 million. Judge Frank W. Volk presides over the case. Joseph W. Caaldwell, Esq., at Caldwell & Riffee, in Charleston, WV, is serving as counsel to the Debtor. STOLLINGS TRUCKING: Lyndon Property Tries to Block Plan Outline OK ------------------------------------------------------------------ Lyndon Property Insurance Company, Inc., filed with the U.S. Bankruptcy Court for the Southern District of West Virginia an objection to Stollings Trucking Company, Inc.'s disclosure statement dated July 20, 2017, referring to the Debtor's Chapter 11 plan of liquidation dated July 20, 2017. Lyndon complains that the Disclosure Statement does not provide adequate information regarding Lyndon's claim, the surety bonds, the LCs, the Debtor's reclamation obligations and the claims arising from any failure to perform those obligations, the Debtor's financial condition and projections, and the structure and operation of the proposed liquidating trust. Th eDisclosure Statement, says Lyndon, cannot be approved as it does not provide the information required for creditors and parties-in-interest to determine whether to vote in favor or against the Plan. Lyndon reaffirms its commitment, however, to work with the Debtor to propose a confirmable plan and hereby requests that the Court grant the Debtor additional time to formulate a plan. Lyndon has a claim against the Debtor in the amount of $1,458,284. This claim is secured, in part, by the LCs. The Disclosure Statement, despite listing Lyndon as a secured creditor in the amount of $510,399, does not otherwise identify Lyndon, its claim, or the collateral securing that claim in any other way and, in fact, even the Plan itself does not classify or provide any proposed treatment for Lyndon's claim. The failure to mention or provide any treatment for a claim in excess of a million dollars is surely a per se lack of "adequate information" regarding that claim, Lyndon states. Lyndon says that because the Disclosure Statement does not reference its claim, it also fails to provide "adequate information" regarding the potential effect of Lyndon's claim on the bankruptcy estate. In the event that some or all of the Surety Bonds are forfeited to West Virginia Department of Environmental Protection, Lyndon will necessarily draw on the LCs. See Graham v. State of West Virginia. To the extent that the LCs are secured by estate property in an equivalent amount, the Debtor's estate will be diminished by the full amount of the LCs. In the event of bond forfeiture, Lyndon will seek to enforce its indemnity claim against the Debtor and, as a result of its payment of the Surety Bond amounts to WVDEP, it will be subrogated to the claim of WVDEP. Because WVDEP would be entitled to an administrative expense priority claim against the estate, Lyndon, as the subrogee of WVDEP, would be entitled to that same priority. In the event of bond forfeiture, Lyndon will possess an administrative priority claim in an amount not less than $947,885. In the event the Debtor's reclamation liability exceeds the amount of the Surety Bonds, WVDEP itself would also have an administrative expense claim for the amount of any excess liability. Neither the Plan nor the Disclosure Statement appear to contemplate these administrative liabilities, notwithstanding their contemplation of the potential for forfeiture of the Debtor's bonds. The Debtor, in its Disclosure Statement and Plan, appears to recognize that reclamation is the primary obligation of the Debtor and that the Debtor is ultimately responsible for reclaiming its permits to the standards required by WVDEP. Lyndon shares that the Disclosure Statement is less clear, however, regarding how this reclamation will be conducted, who will do it, how much it will cost, and how long it will take. This information is required for creditors and parties-in-interest to evaluate the propriety and feasibility of the Plan. According to Lyndon, there is language in the Disclosure Statement from which one could surmise that the Debtor is the party that will conduct, and pay for, any required reclamation. This supposition, however, appears to be contradicted by the fact that (i) the Debtor is in the process of disposing of all or substantially all of the equipment it would need to perform reclamation; and (ii) the Plan appears to contemplate the transfer of all of the assets and liabilities of the Debtor to a liquidating trust. Lyndon claims that the Disclosure Statement also provides no information regarding the structure of the liquidating trust or the identity of any liquidating trustee. A copy of the Objection is available at: http://bankrupt.com/misc/wvsb15-20624-413.pdf Lyndon is represented by: Stephen L. Thompson, Esq. BARTH & THOMPSON P.O. Box 129 Charleston, West Virginia 25321 Tel: (304) 342-7111 Fax: (304) 342-6215 E-mail: sthompson@barth-thompson.com -- and -- Daniel I. Waxman, Esq. WYATT, TARRANT & COMBS, LLP 250 West Main Street, Suite 1600 Lexington, Kentucky 40507 Tel: (859) 233-2012 Fax: (859) 259-0649 E-mail: Lexbankruptcy@wyattfirm.com About Stollings Trucking Stollings Trucking Company, Inc., began its operations in 1990. Throughout the years, the Debtor both hauled coal and mined coal for its own profit. As it grew, it acquired more equipment and rolling stock. Stollings also obtained mining permits on property in Logan County, West Virginia, and was a party to coal leases. Stollings Trucking sought protection under Chapter 11 of the Bankruptcy Code (Bankr. S.D. W.Va. Case No. 15-20624) on Dec. 7, 2015. Rhonda Marcum, president, signed the petition. At the time of the filing, the Debtor estimated assets and liabilities of $1 million to $10 million. Judge Frank W. Volk presides over the case. Joseph W. Caaldwell, Esq., at Caldwell & Riffee, in Charleston, WV, is serving as counsel to the Debtor. STONE FOX: Chapter 11 Petition Filed in Bad Faith, Court Rules -------------------------------------------------------------- On Sept. 12, 2017, hearings were held involving Debtor Stone Fox Capital LLC with respect to the following matters: (1) the Motion of the U.S. Trustee to Dismiss Chapter 11 Case; (2) Creditor's Motion for Sanctions Pursuant to USCS Bankruptcy Rule 9011; and (3) the Court's Order dated August 10, 2017 requiring Stone Fox to appear and show cause why the case should not be dismissed with prejudice. Upon consideration of the parties' filings, the record of the case as well as the Debtor's previous case, and the testimony and arguments presented on Sept. 12, 2017, Judge Carlota M. Bohm of the U.S. Bankruptcy Court for the Western District of Pennsylvania finds that dismissal of the case with prejudice is appropriate. The Court finds that sufficient grounds for dismissal exist as Debtor has failed to obtain disinterested, court-approved counsel and cannot proceed pro se. Furthermore, the case must be dismissed as the evidence supports a finding that the petition was not filed in good faith. Accordingly, dismissal with prejudice is appropriate, and Debtor shall not be permitted to file a bankruptcy petition for 180 days. No sanctions will be imposed at this time. A full-text copy of Judge Bohm's Memorandum Opinion dated Sept. 18, 2017, is available at: http://bankrupt.com/misc/pawb17-22680-75.pdf About Stone Fox Capital LLC Stone Fox Capital LLC sought protection under Chapter 11 of the Bankruptcy Code (Bankr. W.D. Pa. Case No. 17-22680) on June 30, 2017. Judge Carlota M. Bohm presides over the case. The Debtor previously filed Chapter 11 petition (Bankr. W.D. Pa. Case No. 16-24791). That case was filed on December 29, 2016, and was dismissed on January 17, 2017. SUNEDISON INC: Proposes Bid Procedures for Sherman Real Property ---------------------------------------------------------------- BankruptcyData.com reported that SunEdison Inc. filed with the U.S. Bankruptcy Court a motion for an order approving bidding procedures related to the Debtors' sale of real property located in Sherman, TX (subject to higher or better offers and Court approval), the times, dates, places and forms of notice for an auction and a sale hearing, a break-up fee and expense reimbursement, an order approving the sale (free and clear of liens, claims, encumbrances and other interests) and authorizing the payment of broker commissions on an interim basis from sale proceeds. The motion explains, "Indeed, after a year plus process and consideration of numerous written offers to acquire the Texas Property, the Debtors accepted, subject to higher and better offers and Bankruptcy Court approval, the written offer from Corning Research & Development (the 'Stalking Horse Purchaser') as a 'stalking horse offer'. The Debtors and the Stalking Horse Purchaser have negotiated a purchase and sale agreement . . . providing for the sale of the Texas Property for a purchase price of $21,000,000 (the 'Purchase Price'), subject to higher or better offers and Bankruptcy Court approval. The Stalking Horse Purchaser provided the Debtors with a $500,000 initial deposit upon execution of the Purchase Agreement (the 'Deposit'). If the Purchase Agreement has not been previously terminated due to a default by the Stalking Horse Purchaser or a Remediation Termination Event and if the Court approves the Sale of the Texas Property to a Successful Purchaser that is not the Stalking Horse Purchaser or otherwise declines to approve the Sale to the Stalking Horse Purchaser, the Purchase Agreement provides that the Stalking Horse Purchaser will be entitled to (a) the return of the Deposit, (b) a break-up fee equal to three-percent (3%) of the approved Purchase Price, (the 'Break-Up Fee'), and (c) an expense reimbursement up to $150,000 (the 'Expense Reimbursement')." About SunEdison, Inc. SunEdison, Inc. (OTC PINK: SUNEQ), is a developer and seller of photovoltaic energy solutions, an owner and operator of clean power generation assets, and a global leader in the development, manufacture and sale of silicon wafers to the semiconductor industry. On April 21, 2016, SunEdison, Inc., and 25 of its affiliates each filed a Chapter 11 bankruptcy petition (Bankr. S.D.N.Y. Case Nos. 16-10991 to 16-11017). Martin H. Truong, the senior vice president, general counsel and secretary, signed the petitions. The Debtors disclosed total assets of $20.7 billion and total debt of $16.1 billion as of Sept. 30, 2015. The Debtors have hired Skadden, Arps, Slate, Meagher & Flom LLP as counsel, Togut, Segal & Segal LLP as conflicts counsel, Rothschild Inc. as investment banker and financial advisor, McKinsey Recovery & Transformation Services U.S., LLC, as restructuring advisors and Prime Clerk LLC as claims and noticing agent. The Debtors employed PricewaterhouseCoopers LLP as financial advisors; and KPMG LLP as their auditor and tax consultant. SunEdison also tapped Eversheds LLP as its special counsel for Great Britain and the Middle East. Cohen & Gresser LLP has also been retained as special counsel. The Debtors tapped Ernst & Young LLP to provide tax-related services. Keen-Summit Capital Partners LLC has been hired as real estate advisor. Binswanger of Texas, Inc. also has been retained as real estate agent. Sullivan & Cromwell LLP serves as counsel to TerraForm Power, Inc., and TerraForm Global, Inc. An official committee of unsecured creditors has been appointed in the case. The Committee tapped Weil, Gotshal & Manges LLP as its general bankruptcy counsel and Morrison & Foerster LLP as special counsel. Togut, Segal & Segal LLP and Kobre & Kim LLP serve as conflicts counsel. Alvarez & Marsal North America, LLC, serves as the Committee's financial advisors. Counsel to the administrative agent under the Debtors' prepetition first lien credit agreement are Richard Levy, Esq., and Brad Kotler, Esq., at Latham & Watkins. Counsel to the administrative agent under the postpetition DIP financing facility are Scott Greissman, Esq., and Elizabeth Feld, Esq., at White & Case LLP. Counsel to the Tranche B Lenders (as defined in the DIP credit agreement) and the steering committee of the second lien creditors are Arik Preis, Esq., and Naomi Moss, Esq., at Akin Gump Strauss Hauer & Field, LLP. Counsel to the administrative agent under the Debtors' prepetition second lien credit agreement is Daniel S. Brown, Esq., at Pillsbury Winthrop Shaw Pittman LLP. The collateral trustee under the Debtors' prepetition second lien credit agreement and the indenture trustee under each of the Debtors' outstanding bond issuances, is represented by Marie C. Pollio, Esq., at Shipman & Goodwin LLP. Counsel to the ad hoc group of certain holders of the Debtors' convertible senior notes is White & Case LLP's Tom Lauria, Esq. * * * On March 28, 2017, the Debtors filed their Plan of Reorganization and related Disclosure Statement. SUSITNA STATION AIRFIELD: U.S. Survey 4274 to be Auctioned Dec. 1 ----------------------------------------------------------------- Fidelity Title Agency of Alaska, as Trustee, will sell the property described as U.S. Survey 4274 located within Sections 13 and 14, township 21 South, Range 1 East, Fairbanks Meridian, Alaska, located in the Talkeetna Recording District, Third Judicial District, State of Alaska, at a foreclosure auction set for Dec. 1, 2017. North Susitna Station Airfield and Heliport, LLC, the owner of the property, has been declared in default under a deed of trust it executed in favor of Coast-Line Enterprises, Incorporated, and John Lutz and Mary Lutz, husband and wife, as Beneficiary. "Trustor is in default as payment of the Deed of Trust Note is 33 months or more past due," according to a notice by Fidelity Title. The amount due and owing by Susitna Station Airfield to the Beneficiaries as of July 17, 2017, is $576,780.75, which includes $476,251.23 in principal, $91,974.75 in interest from October 14, 2014, $760.00 in escrow fees and escrow termination fees, $4,631.77 in past due and owing property taxes for 2015 and 2016 (excluding late fees), $1,713.00 for Trustee's Sale Guarantee, and $1,450.00 in attorney fees incurred to date. The Balance will continue to accrue interest after July 17 at a rate in accordance with the Note until the time of sale. Other charges, as allowed under the loan documents, may also accrue until the time of sale. Fidelity Tile is selling the property, by demand of the Beneficiary, to satisfy the obligations secured thereby at an auction sale to be held on December 1, 2017, in the main lobby of the Boney Courthouse, 303 K. Street, Anchorage, Alaska. The Sale may be held with other sales as Trustee may conduct which shall begin at 10:00 a.m. and continue until complete. The attorney for the trustee or another agent of the trustee may conduct the sale. Sale shall be made to the highest bidder. Payment must be made at the time of sale in cash or by cashier's check. The Beneficiary may enter a credit offset bid consisting of sums due it under the deed of trust security agreement and Promissory Note. Title to the real property with be conveyed by the trustee's quitclaim deed without warranties of title. If default has arisen by failure to make payments required under the Promissory Note and/or deed of trust, the default may be cured and this sale terminated if (1) payment of the sum then in default, other than principal that would not then be due if default had not occurred, and attorney fees and other foreclosure fees and costs actually incurred by the Beneficiary and the Trustee due to the default has been made at any time before the sale date stated in this notice or to which the sale is postponed, and (2) when notice of default has been recorded two or more times previously under the same deed of trust described and the default has been cured, the trustee does not elect to refuse payment and continue the sale. To determine the current amount required to be paid to cure the default and reinstate the payment terms of the Promissory Note, interested parties may direct requests to: The Dawson Law Group, LLC. P.O. Box 244965 Anchorage, AK 99524 Telephone 907-277-3995 The Trustee may be reached at: Leslie Plikat / COO Fidelity Title Agency of Alaska, Trustee 3150 C St #220 Anchorage, AK 99503 Tel: 907-277-6601 T3M INC: Court Grants Conditional Conversion to Chapter 7 --------------------------------------------------------- BankruptcyData.com reported that the U.S. Bankruptcy Court granted conditional approval to the motion to convert T3M's Chapter 11 reorganization to a liquidation under Chapter 7 or, alternatively, to dismiss the case. According to the report, the order provides, among other things, that if the Debtor does not file a sale procedures motion by 5:00 p.m. Pacific Time on Sept. 21, 2017, the Debtor's chapter 11 case shall be converted to a case under chapter 7 of the United States Bankruptcy Code without an opportunity for further argument or briefing and the UST shall appoint a chapter 7 trustee, provided, however that the UST and/or Lender Collections may request that such conversion not take place, which such request shall be considered by the Court. If the Procedures Motion is timely filed, the Motions are continued and the Court will hold a hearing to consider the Procedures Motion on Sept. 28, 2017 at 1:30 p.m. Pacific Time. About T3M Inc. Founded in 2006 in Costa Mesa, California, and previously known as T3 Motion, Inc., T3M Inc. designs, manufactures and markets personal mobility vehicles powered by electric motors to the professional and consumer markets. Its initial product is the T3 Series, a three wheel, electric stand-up vehicle powered by a quiet, zero-gas emission electric motor that is designed specifically for public and private security personnel. T3M Inc. sought protection under Chapter 11 of the Bankruptcy Code (Bankr. C.D. Cal. Case No. 17-14082) on May 15, 2017. Mi "Michael" Zhang, president, signed the petition. The Debtor estimated assets and debt at $1 million to $10 million as of the bankruptcy filing. Judge Scott H. Yun presides over the case. Aram Ordubegian, Esq., and M. Douglas Flahaut, Esq., at Arent Fox LLP, serve as the Debtor's legal counsel. LKP Global Law LLP is the Debtor's special litigation counsel. TENET HEALTHCARE: Fitch Affirms 'B' Long-Term IDR; Outlook Stable ----------------------------------------------------------------- Fitch Ratings has affirmed Tenet Healthcare Corp.'s ratings, including the long-term Issuer Default Rating (IDR) at 'B'. The ratings apply to approximately $15.4 billion of debt at June 30, 2017. The Rating Outlook is Stable. KEY RATING DRIVERS Favorable Operating Profile: Tenet is among the largest for-profit operators of acute care hospitals in the U.S. and, following the acquisition of a majority interest in United Surgical Partners International (USPI) in 2015, also a leading operator of ambulatory surgery and imaging centers. The USPI transaction improved Tenet's payor mix and boosted its position in more profitable outpatient services. USPI also provides an offset to Fitch's expectation for flat to declining inpatient hospital volumes due to a secular shift toward lower-cost care. Lingering High Leverage: Debt funding of the USPI transaction prolonged the deleveraging horizon Fitch considered following Tenet's 2013 acquisition of acute care hospital operator Vanguard Health Systems, Inc. Deleveraging has been slow because it relies primarily on EBITDA growth. Tenet's weak free-cash-flow (FCF) generation has limited the company's ability to repay debt; at June 30, 2017 leverage (total debt/EBITDA after associate and minority dividends) was 7.5x. FCF Persistently Weak: Lower cash interest expense following the refinancing of high-cost debt as well as lower capital intensity due to the completion of several large hospital construction projects is contributing to slightly improving FCF (CFO less capital expenditures and after associate and minority dividends), but the level remains weak, both on an absolute basis and compared with the company's peer group. During 2016, Tenet spent $517 million on a litigation settlement. When adjusted for this one-time payment and a delay in certain payments from the state of California during 2017, LTM June 30, 2017 FCF would have been about negative $50 million. Activist Shareholder: Glenview Capital has an 18% ownership stake in Tenet, and in August 2017 two Glenview employees stepped down from Tenet's BOD, resulting in the suspension of a stand-still agreement with the company. Glenview has a history of instigating change in the hospital sector, most notably a proxy battle with Health Management Associates (HMA) that resulted in the re-seating of the Board of Directors and culminating in a sale of that company to Community Health Systems. Glenview has not made public any detailed plans about strategic objectives or priorities with respect to its ownership stake in Tenet, but Tenet's CEO has announced that he will resign in March 2018 or sooner if a replacement is selected. Operational Restructuring Plan: Tenet has been pruning the portfolio of hospitals through divestitures, and in early September management announced plans to sell another eight hospitals. A more comprehensive operational restructuring, including a sale of one of the operating segments, could be advanced by activist shareholders as a strategic option. The influence of such a transaction on the credit profile would depend upon the amount of proceeds raised, the use of the proceeds for various priorities including debt repayment, and the operational outlook for the remaining business. The terms of Tenet's debt agreements provide the company with a good deal of leeway in terms of asset sales and use of proceeds. Regulatory Uncertainty: Any policy to replace or reform the Affordable Care Act (ACA) that results in fewer insured individuals will result in a weaker payor mix for acute care hospitals, which would pressure margins unless offset by cost-saving measures or higher reimbursement through a rollback of the fees and payment cuts required by the ACA. Tenet's management has stated that the ACA has been a headwind to earnings considering its associated cuts to Medicare and Medicaid payments. DERIVATION SUMMARY Tenet's 'B' IDR reflects the company's highly leveraged balance sheet and weak FCF generation. The financial profile is similar to 'B' rated hospital industry peer Community Health Systems, Inc. (CHS). Both companies have high financial leverage as a result of large debt funded acquisitions made during 2013-2015. Tenet has a stronger operating profile than CHS. Like higher rated industry peers HCA Healthcare, Inc. and Universal Health Services, Inc., Tenet's hospitals are primarily located in urban or large suburban markets that have relatively favorable organic growth prospects. KEY ASSUMPTIONS Fitch's key assumptions within its ratings case for the issuer include: -- Top-line growth of approximately negative 2% in each of 2017 and 2018; this assumes flat same hospital growth in the hospital operations segment and approximately 4% growth in each of the Conifer Health Solutions and ambulatory care segments, and includes the divestitures of the Houston and Philadelphia hospitals; -- Operating EBITDA margin (Fitch's EBITDA calculation excludes income from affiliates) of 12.1% in 2017 and expanding slightly through the forecast period due to the divestiture of the lower margin Philadelphia hospitals, wind down of the health plan business and growth of the higher margin ambulatory segment's share of EBITDA. Fitch's 2017 EBITDA forecast assumes that the California provider fee program is approved late in the calendar year; -- Tenet spends about $560 million to acquire Welsh, Carson, Anderson, & Stowe's remaining 15% interest in the USPI joint venture through the end of 2019; -- Capital expenditures of $730 million in 2017 and capital intensity of 4% through 2020; -- FCF (CFO less capital expenditures and associate and minority dividends) of about $150 million in 2017 and 2018-2020 FCF margin of slightly above 1%; -- Total debt/EBITDA after associate and minority dividends is 7.1x at the end of 2017 and declines to about 6.5x by 2020 due to EBITDA growth and a small amount of proceeds from hospital divestitures used to repay debt. RATING SENSITIVITIES Future Developments That May, Individually or Collectively, Lead to Positive Rating Action An expectation of gross debt/EBITDA after associate and minority dividends sustained near 5.5x and an FCF margin of 3%-4% could result in an upgrade to 'B+'. Future Developments That May, Individually or Collectively, Lead to Negative Rating Action Gross debt/EBITDA after associate and minority dividends durably above 7.0x coupled with a cash flow deficit that requires incremental debt funding to complete the purchase of WCAS's ownership stake in USPI through 2019 are likely to cause a downgrade to 'B-'. This would most likely be accompanied by further deterioration in organic trends in patient volumes in the hospital operations segment. Fitch's current ratings case anticipates stabilization but not an improvement in trends. LIQUIDITY Generally Adequate Liquidity Profile: At June 30, 2017, liquidity was provided by $475 million of cash on hand and $998 million of availability on the $1 billion capacity bank revolver. Tenet's debt agreements do not include financial maintenance covenants aside from a 1.5x fixed-charge coverage ratio test in the bank agreement that is only in effect during a liquidity event, defined as whenever available asset-based lending (ABL) facility capacity is less than $100 million. LTM EBITDA/interest paid equalled 2.2x and is expected to improve slightly through the forecast period due to lower interest expense stemming from recent refinancing of some relatively high cost debt. Aside from the ABL facility, there is no floating rate debt in the capital structure, so exposure to rising interest rates is not a concern. Weak FCF Generation: Opportunities to reduce leverage through debt repayment are limited partly because Tenet does not consistently generate positive FCF. Industry lagging profitability and a high interest expense burden have been ongoing headwinds. In the LTM period ended June 30, 2017, Fitch calculates that FCF would have been about negative $50 million if adjusted for one-time items related to a litigation settlement payment of $517 million in late 2016 and the delay of a cumulative $110 million of supplemental Medicaid payments from the state of California. FULL LIST OF RATING ACTIONS Fitch has affirmed the follow ratings: Tenet Healthcare Corp. -- Long-term IDR at 'B'; -- Senior secured ABL facility at 'BB/RR1'; -- Senior secured first-lien notes at 'BB-/RR2'; -- Senior secured second-lien notes a t 'B-/RR5'; -- Senior unsecured notes at 'B-/RR5'. The Rating Outlook is Stable. The 'BB/RR1' and 'BB-/RR2' ratings for Tenet's ABL facility and the senior secured first-lien notes reflects Fitch's expectation of 100% recovery for the ABL facility and 90% recovery for the $6.1 billion first-lien secured notes, respectively, under a bankruptcy scenario. The 'B-/RR5' rating on the $2.2B senior secured second-lien notes and $6.4 billion senior unsecured notes reflects Fitch's expectations of recovery of 22% of outstanding principal. The ABL facility is assumed to be fully recovered before the other secured debt in the capital structure. The ABL facility is secured by a first-priority lien on the patient accounts receivable of all the borrower's wholly owned hospital subsidiaries, while the first- and second-lien secured notes are secured by the capital stock of the operating subsidiaries, making the notes structurally subordinate to the ABL facility with respect to the accounts receivable collateral. Fitch estimates an enterprise value (EV) on a going concern basis of $7.8 billion for Tenet, after a deduction of 10% for administrative claims. The EV assumption is based on post reorganization EBITDA after dividends to associates and minorities of $1.2 billion and a 7x multiple. The post-reorganization EBITDA estimate is 43% lower than LTM EBITDA and considers the attributes of the acute care hospital sector including a high proportion of revenue (30%-40%) generated by government payors, exposing hospital companies to unforeseen regulatory changes; the legal obligation of hospital providers to treat uninsured patients, resulting in a high financial burden for uncompensated care, and the highly regulated nature of the hospital industry. During the early part of the past decade, Tenet's EBITDA dropped by more than half as a result of an operational restructuring to correct business practices in violation of Medicare standards. There is a dearth of bankruptcy history in the acute care hospital segment. In lieu of data on bankruptcy emergence multiples in the sector, the 7x multiple employed for Tenet reflects a history of acquisition multiples for large acute care hospital companies with similar business profiles as Tenet in the range of 7x-10x since 2006 and the average current trading multiple (EV/EBITDA) of Tenet's peer group (HCA, UHS, LPNT, CYH), which is about 8.0x and has fluctuated between approximately 6.5x and 9.5x since 2011. Fitch assumes that Tenet would draw $500 million or 50% of the available capacity on the $1 billion ABL facility in a bankruptcy scenario, and includes that amount in the claims waterfall. The revolver is collateralized by patient accounts receivable, and Fitch assumes a reduction in the borrowing base in a distressed scenario, limiting the amount Tenet can draw on the facility. Based on the definitions of the secured debt agreements, Fitch believes that the group of operating subsidiaries that guarantee the secured debt excludes any non-wholly owned and nondomestic subsidiaries and therefore does not encompass the value of the segments that is not owned by Tenet. At Dec. 31, 2016, Fitch estimates that about 74% of consolidated LTM EBITDA was contributed by the hospital operations segment and the portion of the ambulatory care segment owned by Tenet and uses this value as a proxy to determine a rough value of the secured debt collateral of $5.8 billion. Fitch assumes this amount is completely consumed by the ABL facility and the first-lien lenders, leaving $2 billion of residual value to be distributed on a pro rata basis to the remaining $800 million of first-lien claims and the second-lien secured and unsecured claims. THORPE INSULATION: 9th Cir. Vacates Settlement Enforcement Ruling ----------------------------------------------------------------- Judge John B. Owens of the U.S. Court of Appeals for the Ninth Circuit vacates the District Court's order affirming a Bankruptcy Judge's order enforcing settlement in the appeals case captioned MICHAEL J. MANDELBROT; THE MANDELBROT LAW FIRM, Appellants, v. J.T. THORPE SETTLEMENT TRUST; THORPE INSULATION COMPANY ASBESTOS SETTLEMENT TRUST; CHARLES B. RENFREW, Administrative Law Judge, Futures Representative, Appellees, No. 15-56430, (9th Cir.) for further proceedings. The appellees in this case -- the J.T. Thorpe Settlement Trust, and the Thorpe Insulation Company Asbestos Settlement Trust -- are asbestos bankruptcy trusts. The third appellee, Charles Renfrew, is the "futures representative" of the two appellee trusts, a fiduciary charged with representing the interests of future claimants. Asbestos trusts are created through the Chapter 11 reorganization of entities exposed to significant asbestos liability. Although asbestos trusts arise in the course of federal bankruptcy proceedings, they are formally created under state trust law. The J.T. Thorpe and Thorpe Insulation plans of reorganization followed the standard practice of the bankruptcy court retaining jurisdiction to supervise the administration of the trust. The Thorpe Trusts' procedures provide for claimants to submit evidence and for the relevant trust to evaluate it. To the extent the claimant shows exposure to the Debtor's asbestos and compensable harm, the trust offers a settlement. A claimant may reject the offer and start adversarial proceedings, but only after the ordinary claims process runs its course. This case starts with the Thorpe Trusts' barring Michael J. Mandelbrot from presenting evidence on behalf of his clients, which is a remedy -- "debarment" -- that helps asbestos trusts protect themselves from paying out on bad claims. For over 20 years, Mandelbrot has represented asbestos claimants before trusts created in the course of federal Chapter 11 proceedings. As of 2013, he had submitted more than 13,000 claims to asbestos trusts nationwide. In the fall of 2011, the Thorpe Trusts -- along with another, the Western Asbestos Settlement Trust -- began investigating some of those claims. Each of the Thorpe Trusts, as well as the Western Trust, are distinct entities. To reduce overhead, however, the trusts share certain administrative resources -- both of the Thorpe Trusts have contracted out their claims administration function to the Western Trust. Claims are asserted against individual trusts, and then -- for administrative purposes only -- processed by the Western Trust's staff. Debarring Mandelbrot from the Thorpe Trusts means that he cannot file claims for compensation out of Thorpe Trust funds, but relieves the Western Trust of the administrative burdens associated with processing those claims. The three trusts essentially undertook a single joint investigation, which concluded, in May of 2013, with a letter to Mandelbrot finding that he was "unreliable," and that, with respect to the Thorpe Trusts, he had engaged in a pattern of submitting unreliable evidence. The trusts also noted the existence of "substantial information to support a conclusion" that Mandelbrot had intentionally falsified evidence, but did not actually "make such a determination." As a result of their findings, the Thorpe Trusts (but not the Western Trust) debarred Mandelbrot. They determined that they would "accept no further evidence or claims from [him]," but offered to suspend that bar if Mandelbrot submitted his clients' claims to extra scrutiny during a two-year probationary period. Mandelbrot did not take them up on their offer, and in August of 2013, the Thorpe Trusts jointly moved the bankruptcy court for instructions (essentially a declaratory judgment) that their decision to debar Mandelbrot was "authorized under the TDPs of each Trust, and reasonable in light of the Trusts' audit and investigative findings." In exchange for Mandelbrot's agreement to be debarred, the Thorpe Trusts and the Western Trust agreed that they would not seek to recover any money from Mandelbrot. The parties departed on the understanding that they would memorialize the settlement in a final written agreement. However, Mandelbrot did not hold up his end of the deal -- he repudiated the settlement within days. Accordingly, the Thorpe Trusts filed a motion to enforce the agreement, which Mandelbrot opposed on the grounds that his agreement not to practice before the four trusts (the "debarment provision") was illegal under California Business and Professions Code Section 16600 -- which provides that "every contract by which anyone is restrained from engaging in a lawful profession... is to that extent void" -- and California Rule of Professional Conduct 1-500 -- which prohibits a California lawyer from being "a party to... an agreement, whether in connection with the settlement of a lawsuit or otherwise, if the agreement restricts the right... to practice law." Without addressing section 16600 or Rule 1-500, the Bankruptcy Judge granted the Trusts' motion to enforce the settlement, and barred Mandelbrot from filing claims with the Trusts. The District Court affirmed that decision, concluding that California law controls this issue, and that neither section 16600 nor Rule 1-500 prohibits the settlement agreement. The Bankruptcy Judge found that the Thorpe Trusts' conclusion that Mandelbrot had submitted unreliable claims to be reasonable. Moreover, the Bankruptcy Judge recognized the existence of an important countervailing interest -- asbestos trusts' need to "protect their beneficiaries from a lawyer they find to be unreliable." The District Court affirmed that decision, concluding that California law controls this issue, and that neither section 16600 nor Rule 1-500 prohibits the settlement agreement. The District Court also concluded that harming the trusts' ability to vindicate that interest "on the ground that refusing to deal with [Mandelbrot] would harm his practice" would serve "no public policy purpose." The District Judge likewise found that refusing to enforce the debarment provision would not advance the policies underlying California Rule of Professional Conduct 1-500. In the District Judge's opinion, "the [debarment provision] does not deny the public access to a lawyer who prevailed against the defendant in a prior action. Instead, the District Judge further said that it protects the public from one who submitted unreliable evidence that led to further scrutiny, audits, and expense. The ultimate question in this appeal is whether or not the debarment provision is valid and enforceable -- to the extent Mandelbrot tries to get out from under any other provision of the settlement agreement. His only argument is that the debarment provision is void and the remainder of the deal non-severable. Mandelbrot argues that California law applies because the agreement was made in, and will largely be performed in, California. California law embodies a strong public policy against restricting professional practice, and Mandelbrot argues that under California Business & Professions Code Section 16600, as well as California Rule of Professional Conduct 1-500, the settlement agreement is void. On the other hand, the Thorpe Trusts contend that the issue is governed by either Nevada law -- because they are domiciled in that state and constituted under its law of trusts -- or federal law -- because the trusts were brought forth and continue to operate pursuant to a federally-supervised plan of reorganization. The trusts' ultimate position, however, is that Mandelbrot's agreement to be debarred is enforceable regardless of which law applies. The Ninth Circuit notes that in its written opinion, the District Court did not discuss Golden v. California Emergency Physicians Medical Group, 782 F.3d 1083 (9th Cir. 2015), which the Ninth Circuit had decided a few months prior. The Ninth Circuit finds that the District Court also did not analyze whether federal law controlled the case, as neither party had clearly argued its application. In Golden, the Court examined whether section 16600 prohibited a settlement agreement that constrained a physician's freedom to practice medicine. After thoroughly reviewing the statutory language and relevant case law, the majority concluded that "in determining a contract's validity under Section 16600... the court should direct its inquiry according to the actual statutory language: whether the challenged provision 'restrains anyone from engaging in a lawful profession, trade, or business of any kind.'" The majority in Golden, interpreted California law to require a broad reading of section 16600. Because the District Court in the Golden case did not have the benefit of the majority opinion, the Court remanded the case with its "relatively undeveloped record" so the district court could order additional briefing or conduct further fact-finding. The Ninth Circuit also finds that the briefs filed in the District Court also failed to squarely argue that federal law controls, a possible oversight which is hardly the trial judge's fault. The Ninth Circuit maintains that fundamental questions of law should appear at the beginning of a brief, not thrown in at the end, and should be clearly made. The Ninth Circuit went on that the District Court easily could have concluded that the Trusts never made a federal choice-of-law argument. The Ninth Circuit believes that the same approach as that in Golden is appropriate in this case because neither party adequately argued to the District Court that federal law governs (and have hardly argued it to this court), and the District Court never addressed the impact of Golden. Consistent with Golden, the Ninth Circuit considers these calls are best for the District Court to make in the first instance. Accordingly, the Ninth Circuit vacates and remands this case so that the District Court can decide whether federal or state law governs (including whether the federal law argument has been waived), and what impact, if any, Golden has on this case. Judge Korman dissented, holding that the United States has a strong interest in enforcing the debarment provision, and since it is reasonable, California has no interest in invalidating it. Mandelbrot has identified no other deficiency in the lower courts' judgments enforcing the debarment provision. Those judgments should be affirmed. A full-text copy of the Opinion dated September 14, 2017, is available at http://tinyurl.com/y9bgqvb7from Leagle.com. Dirk Van Ausdall (argued), San Francisco, California; Michael J. Mandelbrot, The Mandelbrot Law Firm, Novato, California; for Appellants. Gary S. Fergus (argued), Fergus Law Office, San Francisco, California; Daniel J. Bussel, Thomas E. Patterson, and Kathryn T. Zwicker, Klee Tuchin Bogdanoff & Stern LLP, Los Angeles, California: for Appellees. About Thorpe Insulation Based in Long Beach, California, Thorpe Insulation Company supplied and distributed asbestos thermal insulation in Southern California before about 1972. The company's products included pipe and boiler insulation, asbestos cloth and insulating mud. After 1972, some of Thorpe's operations also involved asbestos and lead abatement, including repairing insulation that contained asbestos at commercial and industrial sites. On Dec. 17, 2004, Thorpe's lender, Pacific Funding Group LLC, sold its collateral at a foreclosure sale to Farwest Insulation Consulting owned by Eric and David Fults. Following the foreclosure, Thorpe ceased operation of its business. Thorpe has been subjected to about 12,000 claims and lawsuits related to asbestos. Thorpe filed for chapter 11 protection on Oct. 15, 2007 (Bankr. C.D. Calif. Case No. 07-19271). Jeremy V. Richards, Esq., and Scotta E. McFarland, Esq., at Pachulski, Stang, Ziehl & Jones, LLP, represent the Debtor. Los Angeles-based Pacific Insulation Company was incorporated in California by Thorpe on May 23, 2000, to be its wholly owned subsidiary. On Oct. 1, 2000, Pacific transferred 100% of its shares to Thorpe in exchange for Thorpe's materials division assets. Thorpe's sole shareholders and board members, Robert W. Fults and Linda Fults, own 50.1% and 49.9% of Pacific, respectively. Pacific is a southwest commercial and industrial insulation distributor and fabricator with locations in Southern and Northern California, Arizona, and Nevada. It provides pipe, air handling, fire barrier, board and blanket insulation as well as adhesives, mastics and sealants. Pacific has never installed or sold any materials containing asbestos. It currently has 55 full-time employees. Pacific filed for chapter 11 petition on Oct. 31, 2007 (Bankr. C.D. Calif. Case No. 07-20016) due to its alleged asbestos liability and the failure of Thorpe's insurers to pay asbestos claims asserted against Thorpe. John A. Lapinski, Esq., Leslie R. Horowitz, Esq., and Stephen R. Hyam, Esq., at Clark & Trevithick, represent Pacific in its restructuring efforts. On Nov. 6, 2007, Pacific's case was jointly administered under Thorpe Insulation's bankruptcy proceeding. Continental Insurance Company was represented by CARROLL, BURDICK & McDONOUGH, LLP, and SEYFARTH SHAW, LLP. Thorpe Insulation Company was represented by KLEE, TUCHIN, BOGDANOFF & STERN LLP, MORGAN, LEWIS & BOCKIUS LLP, and PACHULSKI, STANG, ZIEHL, YOUNG, & JONES LLP. Thorpe's Official Creditors Committee and Pacific Insulation Company were represented by JONES DAY and CAPLIN & DRYSDALE. The Future Claims Representative was represented by FERGUS, A LAW OFFICE. TMR LLC: New Frontier Bank Forbids Cash Collateral Use ------------------------------------------------------ New Frontier Bank asks the U.S. Bankruptcy Court for the Eastern District of Missouri to prohibit TMR LLC from using the Cash Collateral, specifically the rents, without its consent or in the alternative, provide New Frontier Bank adequate protection of its interests. New Frontier Bank loaned funds to the Debtor as evidenced by two promissory notes. The balance due on the First Note is approximately $4,064,657 with interest continuing to accrue at the per diem rate of $493. The balance due on the Second Note is approximately $440,179 with interest continuing to accrue at the per diem rate of $59. The Notes are secured by two deeds of trust on real property owned by Debtor. The collateral pledged by the Debtor to secure the Notes also includes all of the Debtor's right, title, and interest in and to all present and future leases of the Property and all Rents from the Property. The Notes are also secured by two Absolute Assignments of Rents. As the Notes, First Deed of Trust, Second Deed of Trust, and Assignments of Rents clearly display (and Debtor does not dispute) that New Frontier Bank holds a properly perfected, first-priority interest in the collateral and all proceeds therefrom. Now, New Frontier Bank does not consent to the Debtor's use of the Cash Collateral. New Frontier Bank complains that the Debtor has not offered to make any cash payments to it during the pendency of this bankruptcy case or to provide any other compensation that would be the equivalent of its current interest in the cash collateral. Further, New Frontier Bank alleges that the Debtor has not offered to provide it with a replacement lien on the post-petition Rents. Significantly, contrary to the Debtor's assertion that there is an "equity cushion" in the Debtor's real estate, New Frontier Bank argues that there clearly is not. The parties agree that the property was recently appraised at $5.4 million. New Frontier Bank points out that its secured interest in the Property totals approximately $4.5 million, the judgment lien recorded against the property is $800,000, and real estate taxes total $160,000. As is apparent, New Frontier Bank believes that the liens against the property including the its two Deeds of Trust, the judgment lien, and the real estate taxes equal a value in excess of the appraised value of the property -- this is before any real estate commission which would have to be paid (likely 6% of $5 million and/or greater than $300,000). As a result, New Frontier Bank asserts that there is no equity in the property. In addition, New Frontier Bank relates that the Debtor mentioned that there are various entities owned by the Debtor's principals and asserted that the "income and expenses flow through to their personal tax return," and the Roewes "accumulate income from their various operations into their personal account. They then pay many of their business obligations, with the remaining funds treated as income to them." Accordingly, New Frontier Bank believes that the Debtor's principal has apparently commingled funds and used New Frontier Bank's Cash Collateral for his personal expenses and expenses of other entities while not paying the New Frontier Bank or the real estate taxes. As such, New Frontier Bank asserts that this improper commingling of the funds is yet another reason why the Court should deny the Debtor use of Cash Collateral, and require the Debtor to account for and segregate all Cash Collateral. New Frontier Bank further complains that since the filing date, it has been stayed from any act to obtain possession of the collateral and exercise its rights under the First Deed of Trust, Second Deed of Trust, Assignments of Rents, and state law. New Frontier Bank believes that its interest in the collateral is not adequately protected. Such that if the Debtor is permitted to use New Frontier Bank's cash collateral, New Frontier Bank will suffer irreparable injury, loss and damage. New Frontier Bank is represented by: Scott Greenberg, Esq. Kyle Lane, Esq. SANDBERG PHOENIX & von GONTARD P.C. 600 Washington Avenue - 15th Floor St. Louis, MO 63101-1313 Tel: (314) 231-3332 Fax: (314) 241-7604 E-mail: sgreenberg@sandbergphoenix.com klane@sandbergphoenix.com About TMR LLC TMR, LLC, owns a commercial building in Washington, Missouri, which houses two manufacturing companies. The building also was owned by the Roewes before being transferred to TMR in 2014. The Debtor listed its business as a single asset real estate (as defined in 11 U.S.C. Section 101(51B)). It is a small business debtor as defined in 11 U.S.C. Section 101(51D). TMR filed for Chapter 11 bankruptcy protection (Bankr. E.D. Mo. Case No. 17-45907) on Aug. 29, 2017, estimating its assets and liabilities at between $1 million and $10 million. The petition was signed by Timothy M. Roewe, managing member. Judge Charles E. Rendlen III presides over the case. A. Thomas DeWoskin, Esq., at Danna Mckitrick, PC, serves as the Debtor's bankruptcy counsel. TOYS "R" US: $375M Int'l DIP Facility Has Interim Approval ---------------------------------------------------------- Toys "R" Us, Inc., and its debtor-affiliates filed a motion asking the U.S. Bankruptcy Court for the Eastern District of Virginia to authorize Tru Taj LLC and Tru Taj Finance, Inc., to obtain from consenting beneficial holders of the 12.00% Senior Notes due 2021 of the issuers senior secured postpetition financing on a superpriority priming lien basis in the aggregate principal amount of up to $375 million. Prepetition, on Aug. 16, 2016, Tru Taj LLC and Tru Taj Finance, Inc. issued $441.2 million of 12.00% senior secured notes due August 15, 2021 (the "Prepetition Taj Senior Notes"), governed by a First Supplemental Indenture, dated as of August 26, 2016, with Wilmington Trust, N.A., as trustee and collateral trustee ("Prepetition Notes Agent"). As of the Petition Date, $583 million in aggregate principal amount of Prepetition Taj Senior Notes remains outstanding. An ad hoc group of Taj Noteholders have agreed to provide $375 million in incremental notes to support the Debtors' international operations (the "International DIP Term Loa"). The group of Taj Noteholders also agreed to waive certain defaults under the Prepetition Taj Notes and to forbear from exercising rights and remedies pursuant to a default against the Debtors (the "Taj Waiver"). The Debtors commenced the Chapter 11 cases with firm commitments for approximately $3.125 billion of combined postpetition financings to support their North American and international businesses at the most capital intensive, and important, time in the Debtors' fiscal year. By this motion, the Debtors request approval of approximately $375 million of postpetition financing and related relief to support the Debtors' international business and help fund the administrative expense of the Chapter 11 cases. The Debtors also seek approval to use cash collateral. Nov. 24, which is known as Black Friday, is approximately 10 weeks away, and the holiday shopping season occurs over the following weeks. During this time of year, the Debtors normally focus on the capital-intensive process of building inventory and securing exclusive products in anticipation of the holiday season. This year, though, the Debtors' supply chain has frozen as vendors withdrew trade terms in anticipation of the commencement of these cases. Only the proposed International DIP Facility will thaw that pipeline and restart the flow of inventory to the Non-Debtor Subsidiaries' shelves in time to save the holiday season for the benefit of all of the Debtors' estates, their stakeholders, and parents and children everywhere. International Operations The Tru Taj Debtors determined that they would require access to both postpetition financing sufficient to provide liquidity to administer the Tru Taj Debtors' estates during these chapter 11 cases and access to the Cash Collateral securing such postpetition financing. Among other things, the Tru Taj Debtors' international affiliates need liquidity to protect the equity value of their foreign subsidiaries, which include operating entities throughout Europe, Asia, and Australia. These Non-Debtor Subsidiaries must pay vendors and other participants in their supply chain ahead of the important holiday season and maximize the value of all of the Debtors' entities. The Debtors determined that it was necessary to obtain financing to support the Non-Debtor Subsidiaries, among other reasons, because those entities are the ultimate indirect subsidiaries of Toys "R" Us, Inc., the Debtors' ultimate parent company. Therefore, any harm to the value of the Non-Debtor Subsidiaries' estates will directly and negatively affect the value of the Debtors' estates. Aside from the Non-Debtor Subsidiaries inability to adequately fund operations, the costs associated with administering these chapter 11 cases will also impose significant demands on the Tru Taj Debtors' liquidity. Immediate access to the International DIP Facility and Cash Collateral, if any, is essential to not only meet working capital and business operating needs, but also to fund the administration of these chapter 11 cases, enabling the Debtors and their stakeholders to stabilize their business and develop a consensual and value-maximizing plan of reorganization. Terms of International Financing The salient terms of the International DIP Facility are: * Issuer(s): Tru Taj LLC, Tru Taj Finance, Inc. * Guarantor(s): Toys "R" Us, Inc., Toys "R" Us, Europe, LLC, TRU Taj Holdings 1, LLC, TRU Taj Holdings 2 Limited, TRU Taj Holdings 3, LLC, TRU (Holdings) Limited, and TRU Taj (Europe) Holdings, LLC * Lenders: Consenting beneficial holders of the 12.00% Senior Notes due 2021 of the Issuers. * Entities with Interests in Cash Collateral: Prepetition Noteholders * Term: Stated Maturity Date of 16 months from date of Issuance. * Commitments: $375,000,000 * Interest Rates: 11%. * Milestones: None. The Tru Taj Debtors will pay to the Prepetition Notes Agent an amount equal to interest accrued on the principal amount of the Prepetition Notes Obligations at the applicable non-default rate set forth in the Prepetition Indenture, commencing on the Petition Date and payable on the interest payment dates set forth in the prepetition notes documents. The Tru Taj Debtors will grant to the International DIP Agent for the benefit of itself and the DIP Noteholders: (i) valid, binding, enforceable, non-avoidable, properly perfected liens, and priming liens as applicable, on the DIP collateral, including all property constituting cash collateral, if any, which liens will be subject to the priorities set forth in the DIP court orders and (ii) allowed superpriority administrative expense claims for all obligations owing to the International DIP Agent under the International DIP Documents which DIP Liens and DIP Superpriority Claims will be junior and subordinate to the carve out and otherwise subject to the priorities set forth in the DIP court orders and the applicable International DIP Documents. The Tru Taj Debtors want to pay the principal, interest, fees, expenses, and other amounts payable under the International DIP Documents as such become earned, due, and payable. The Tru Taj Debtors also want to use the prepetition collateral, including cash collateral of the Prepetition Noteholders under the Prepetition Taj Senior Notes. The Tru Taj Debtors also ask for authorization to use cash collateral. The Debtors request that the Court schedule the final hearing within approximately 21 days of the commencement of these chapter 11 cases to consider approval of this motion on a final basis. Interim Approval Granted The Court has granted interim approval to the Motion. The TAJ Debtors are authorized to borrow not more than $100 million on an interim basis. A hearing to consider final approval of the entire $375 million DIP financing package is scheduled for October 3, 2017 at 4:00 p.m. A copy of the Debtors' Motion is available at: http://bankrupt.com/misc/veb17-34665-32.pdf The Supporting Noteholders and the DIP Noteholders tapped Paul, Weiss, Rifkind, Wharton & Garrison, LLP, Linklaters LLP and Whiteford Taylor Preston, LLP as counsel. The lead attorneys of the DIP Noteholders and the Supporting Noteholders can be reached at: Paul, Weiss, Rifkind, Wharton & Garrison LLP 1285 Avenue of the Americas, New York, New York Attn: Brian S. Hermann, Esq. Samuel Lovett, Esq. Counsel to the DIP Agent: Porter Hedges LLP 1000 Main Street, 36th Floor Houston, Texas 77002 Attn: Eric M. English Counsel to the Prepetition Notes Agent Kilpatrick Townsend & Stockton LLP 1100 Peachtree Street NE Atlanta, Georgia 30309-4528 Attn: Todd C. Meyers, Esq. About Toys "R" Us Toys "R" Us, Inc., is an American toy and juvenile-products retailer founded in 1948 and headquartered in Wayne, New Jersey, in the New York City metropolitan area. Merchandise is sold in 880 Toys "R" Us and Babies "R" Us stores in the United States, Puerto Rico and Guam, and in more than 780 international stores and more than 245 licensed stores in 37 countries and jurisdictions. Merchandise is also sold at e-commerce sites including Toysrus.com and Babiesrus.com. On July 21, 2005, a consortium of Bain Capital Partners LLC, Kohlberg Kravis Roberts and Vornado Realty Trust invested $1.3 billion to complete a $6.6 billion leveraged buyout of the company. Toys "R" Us is now a privately owned entity but still files with the Securities and Exchange Commission as required by its debt agreements. The Company's consolidated balance sheet showed $6.572 billion in assets, $7.891 billion in liabilities, and a stockholders' deficit of $1.319 billion as of April 29, 2017. Toys "R" Us, Inc. and certain of its U.S. subsidiaries and its Canadian subsidiary voluntarily filed for relief under Chapter 11 of the Bankruptcy Code (Bankr. E.D. Va. Lead Case No. Case No. 17-34665) on Sept. 19, 2017. Judge Keith L. Phillips is the case judge. In addition, the Company's Canadian subsidiary voluntarily commenced parallel proceedings under the Companies' Creditors Arrangement Act ("CCAA") in Canada in the Ontario Superior Court of Justice. The Company's operations outside of the U.S. and Canada, including its 255 licensed stores and joint venture partnership in Asia, which are separate entities, are not part of the Chapter 11 filing and CCAA proceedings. Kirkland & Ellis LLP is serving as principal legal counsel to Toys "R" Us, Alvarez & Marsal is serving as restructuring advisor and Lazard is serving as financial advisor. Prime Clerk LLC is the claims and noticing agent. Grant Thornton is the monitor appointed in the CCAA case. TOYS "R" US: Bankruptcy No Rating Impact on US CLOs, Fitch Says --------------------------------------------------------------- The bankruptcy filing by Toys 'R' Us (Toys) has no rating impact on U.S. broadly syndicated loan (BSL) CLOs, due to the limited exposure they have to the U.S. retailer and diversified nature of CLO 2.0 portfolios, according to Fitch Ratings. Toys is currently held in 37 CLOs of the 333 Fitch-rated BSL U.S. CLOs and comprises $77.8 million, or less than 0.1% of the total aggregate underlying collateral balance. The average exposure to the defaulted issuer is 0.4% across the 37 CLOs, with KVK CLO 2016-1 Ltd. reporting the highest percentage exposure to Toys at 1.2% of the portfolio, according to the Aug. 3 trustee report. However, KVK CLO 2016-1 exposure is in the form of domestic and Canadian A-1 tranches expected to have recovery in the 91% to 100% range. Twenty-seven CLOs from 11 CLO managers that had gone effective by Jan. 1, 2017 and held Toys' loans reduced their beginning-of-year exposure to the current $56.7 million from $66.2 million, including two CLOs managed by Octagon that sold out of the loans completely. At the same time, four CLOs, managed by KVK and Och-Ziff, increased exposure to Toys in 2017. An additional 12 CLOs now have some exposure to Toys' loans, including five CLOs that went effective in 2017. Trading of Toys' loans across all Fitch-rated CLOs was modest: $15.6 million of notional was sold across 13 CLOs year to date. The domestic first-in last-out (FILO) loan A-1, Canadian A-1 FILO loan and B-4 term loan were sold at average prices of 100.4, 99.9 and 83.7, respectively. On the other hand, a total of $8.3 million of notional was purchased in 12 CLOs, including the B-3 and B-4, at average prices of 91.5 and 84, respectively. The haircuts to CLO overcollateralization (OC) cushions will vary by a tranche held in a particular CLO, due to the variability in recovery estimates from rating agencies and market prices. The recovery value for the purpose of OC calculation is the lower of the market value and the recovery value assigned by a rating agency. Both domestic and Canadian A-1 tranches have RR1 (91%-100%) recovery ratings from Fitch and currently marked in the mid-90s, based on Markit data. On the other hand, B-2/B-3 tranches carry RR4 (31%-50%) recovery rating and are marked in the low 50s, while B-4 tranche recovery is estimated as RR2 (71%-90%) and marked in the mid-60s. Canadian and domestic A-1 tranches comprise approximately $34.1 million in notional value, while B-4 tranches makes up approximately $30.6 million and B-2/B-3 loans $6.3 million. $6.7 million exposure represents senior unsecured term loan issued by US Property Co. I, LLC's, which was not part of the bankruptcy filing, to which Fitch assigns RR1 (91%-100%) and is currently marked in the low 90s. The overall retail exposure across Fitch-rated CLO comprises 5.7% of the aggregate portfolio, down from 7.3% a year ago. Loans of retail issuers rated 'CCC+' and lower account for 0.6%. These retail issuers on the Loans of Concern list make up roughly 0.2% of the overall Fitch-rated CLO portfolio. Despite continuing struggles of overleveraged brick and mortar retailers, CLO exposure remains well contained. TOYS "R" US: JAKKS to Report Loss Due to Toys R Us Woes ------------------------------------------------------- JAKKS Pacific, Inc. on Sept. 20 disclosed that the Company does not anticipate any long-term material adverse impact from the Toys 'R' Us bankruptcy filing. The uninsured portion of the amounts due from Toys 'R' Us represents less than 3% of the Company's outstanding accounts receivables as of September 18, 2017. The Company also stated it is not known yet what the recovery will be on such uninsured receivables. Sales to Toys 'R' Us were anticipated to account for approximately 5% to 6% of the Company's net sales for the third and fourth quarters, but the Company does not know what amount of such sales will be realized. JAKKS now expects to recognize charges against income for the 2017 fiscal year, including cash charges related to the write-off of bad debt and minimum guarantee shortfalls, and non-cash charges related to the impairment of certain assets including goodwill from acquisitions. The Company is revising its forecast since it now expects to sustain a net loss and negative earnings per share for the year, but still expects to have positive EBITDA, as adjusted, for the year, although not higher than the prior year, as previously announced. JAKKS otherwise anticipates no significant impact on its ability to execute on-going corporate initiatives and business operations. JAKKS CEO & Chairman Stephen Berman said, "2017 continues to present a challenging retail environment, which has now been further disrupted by the Toys 'R' Us Chapter 11 filing. Nevertheless, the announced availability of DIP financing leaves us optimistic that we can resume our relationship with Toys 'R' Us as one of its significant suppliers." Mr. Berman continued, "For the past 22 years, since the founding of JAKKS Pacific in 1995, Toys 'R' Us has been one of JAKKS' most significant business partners. Together, the companies have brought new and innovative toy products to millions of children around the world. The Chapter 11 filing by Toys 'R' Us and its announcement of available financing for its continued operations is expected to provide the opportunity for Toys 'R' Us, together with JAKKS, to continue to provide high-quality and exciting toy products for many years to come. JAKKS appreciates the relationship that has existed throughout the years and looks forward to the relationship continuing to grow and flourish." About JAKKS Pacific, Inc. JAKKS Pacific, Inc. -- http://www.jakks.com-- is a designer, manufacturer and marketer of toys and consumer products sold throughout the world, with its headquarters in Santa Monica, California. JAKKS Pacific's popular proprietary brands include BIG-FIGS(TM), XPV(R), Max Tow(TM) and Friends, Disguise(R), Moose Mountain(R), Funnoodle(R), Maui(R), Kids Only!(R); a wide range of entertainment-inspired products featuring premier licensed properties; and, C'est Moi(TM), a youth skincare and make-up brand. Through JAKKS Cares, the company's commitment to philanthropy, JAKKS is helping to make a positive impact on the lives of children. About Toys "R" Us Toys "R" Us, Inc. is an American toy and juvenile-products retailer founded in 1948 and headquartered in Wayne, New Jersey, in the New York City metropolitan area. Merchandise is sold in 880 Toys "R" Us and Babies "R" Us stores in the United States, Puerto Rico and Guam, and in more than 780 international stores and more than 245 licensed stores in 37 countries and jurisdictions. Merchandise is also sold at e-commerce sites including Toysrus.com and Babiesrus.com. On July 21, 2005, a consortium of Bain Capital Partners LLC, Kohlberg Kravis Roberts and Vornado Realty Trust invested $1.3 billion to complete a $6.6 billion leveraged buyout of the company. Toys "R" Us is now a privately owned entity but still files with the Securities and Exchange Commission as required by its debt agreements. The Company's consolidated balance sheet showed $6.572 billion in assets, $7.891 billion in liabilities, and a stockholders' deficit of $1.319 billion as of April 29, 2017. Toys "R" Us, Inc. and certain of its U.S. subsidiaries and its Canadian subsidiary voluntarily filed for relief under Chapter 11 of the Bankruptcy Code (Bankr. E.D. Va. Lead Case No. Case No. 17-34665) on Sept. 19, 2017. Judge Keith L. Phillips is the case judge. In addition, the Company's Canadian subsidiary voluntarily commenced parallel proceedings under the Companies' Creditors Arrangement Act ("CCAA") in Canada in the Ontario Superior Court of Justice. The Company's operations outside of the U.S. and Canada, including its 255 licensed stores and joint venture partnership in Asia, which are separate entities, are not part of the Chapter 11 filing and CCAA proceedings. Kirkland & Ellis LLP is serving as principal legal counsel to Toys "R" Us, Alvarez & Marsal is serving as restructuring advisor and Lazard is serving as financial advisor. Prime Clerk LLC is the claims and noticing agent, and maintains the case Web site https://cases.primeclerk.com/toysrus Grant Thornton is the monitor appointed in the CCAA case. TRIDENT BRANDS: Fengate Has 40.4% Equity Stake as of Sept. 8 ------------------------------------------------------------ Fengate Trident LP, Fengate Trident GP Inc., and Fengate Capital Management Ltd., reported in a Schedule 13D/A filed with the Securities and Exchange Commission that as of Sept. 8, 2017, they beneficially own 21,529,267 shares of common stock of Trident Brands, Inc., which constitutes 40.4 percent based on 34,534,719 shares outstanding, per Exhibit 10.1 to Form 8-K filed Sept. 15, 2015, plus 18,717,381 shares of common stock into which the Convertible Notes may be converted. The Common Stock was issued to the Reporting Persons in consideration for the Notes. The Notes' outstanding principal amount was $511,141 and the total accrued but unpaid interest on the Notes was $94,526, as of Sept. 12, 2017. None of the shares of Common Stock were acquired on margin, or otherwise using borrowed funds or pursuant to any loan or credit arrangement. On Jan. 22, 2016, in connection with an investment in Mycell Technologies LLC, a New Jersey limited liability company, Mycell issued to LPF Investment Corporation a certain convertible promissory note dated Jan. 22, 2016, pursuant to a Note Purchase Agreement dated Jan. 22, 2016. In addition, MCTECH acquired certain additional convertible promissory notes dated February 5, 2016, and May 19, 2016, respectively, issued in accordance with the terms of the NPA. The Notes' total outstanding principal amount as of Sept. 12, 2017, was $511,141 and the total accrued but unpaid interest on the Notes as of Sept. 12, 2017, was $94,526. On April 28, 2017, MCTECH, the Reporting Persons, and certain other parties, as part of a restructuring of the MCTECH's invested assets, entered into a General Transfer and Assignment Agreement, pursuant to which the Notes, and the NPA and certain other related agreements and documents, were, through a series of simultaneous transactions, transferred to Fengate Trident LP. On Sept. 12, 2017, the Reporting Persons and the Issuer, entered into a Note Purchase Agreement, pursuant to which the Notes and the Note Documents were purchased by the Issuer in consideration for 811,886 shares of Common Stock of the Issuer. A full-text copy of the regulatory filing is available at: https://is.gd/ymBgHp About Trident Brands Trident Brands Incorporated, f/k/a Sandfield Ventures Corp., was initially formed to engage in the acquisition, exploration and development of natural resource properties, but has since transitioned and is now focused on branded consumer products and food ingredients. The Company maintains a portfolio of branded consumer products including nutritional products and supplements under the Everlast(R) and Brain Armor(R) brands, and functional food ingredients under the Oceans Omega brand. These brands are focused on the fast growing supplements and nutritional product and heart and brain health categories, supported by an established contract manufacturing, supply chain and research and development infrastructure, and a solid and proactive management team, board of directors and advisors with many years of experience in related categories. Trident reported a net loss of $3.18 million on $168,042 of revenues for the 12 months ended Nov. 30, 2016, compared to a net loss of $3.16 million on $16,569 of revenues for the 12 months ended Nov. 30, 2015. As of May 31, 2017, Trident had $7.16 million in total assets, $9.22 million in total liabilities and a total stockholders' deficit of $2.06 million. TRINITY 83: Court Dismisses Clawback Suit Against ColFin -------------------------------------------------------- On May 15, 2017, Trinity 83, LLC, filed a second adversary proceeding seeking to avoid, as a fraudulent transfer, the cancellation of the mistaken mortgage satisfaction that ColFin Midwest Funding, LLC, had filed in 2015. ColFin filed a motion to dismiss for failure to state a claim on the basis that this action is foreclosed by res judicata principles. Upon analysis of the arguments, Judge Debora L. Thorne of the U.S. Bankruptcy Court for the Northern District of Illinois rules in favor of Colfin. Granting a mortgage is a transfer; its perfection, by recording the mortgage document, is not a transfer between the parties to the mortgage being recorded. Similarly, the mistaken recording of a document purporting to reflect a satisfaction does not constitute a "transfer" between the parties because it only renders the interest vulnerable to later bona fide purchasers, and it is therefore only an act of recording relevant to third party notice, as is the later cancellation of that same document. Because plaintiff alleges, and can only allege, that this act of recording, namely the cancellation of the mistaken entry of satisfaction, constitutes the relevant transfer here, plaintiff's complaint is dismissed. The plaintiff's complaint alleges that the cancellation of the mistakenly recorded satisfaction in the record system constituted an avoidable "transfer" under section 548. In order to state a claim for relief, this allegation, if true, must allow for an inference of the defendant's liability. Owing to the fact that the recording of a mortgage in Illinois does not, as a matter of law, constitute a "transfer" between the parties to the mortgage under section 101(54), the plaintiff's complaint is dismissed with prejudice for failure to state a claim upon which relief can be granted. The bankruptcy case is In re: TRINITY 83 DEVELOPMENT, LLC, Chapter 11, Debtor. TRINITY 83 DEVELOPMENT, LLC, Plaintiff, v. COLFIN MIDWEST FUNDING, LLC, Defendant, Case No. 16-24652 (Bankr. N. D. Ill.). The adversary proceeding is TRINITY 83 DEVELOPMENT, LLC, Plaintiff, v. COLFIN MIDWEST FUNDING, LLC, Defendant, Adv. No. 17-00286 (Bankr. N. D. Ill.). A full-text copy of Judge Thorne's Amended Memorandum Opinion dated Sept. 13, 2017, is available at https://is.gd/vJGeWR from Leagle.com. TRINITY 83 DEVELOPMENT LLC, Plaintiff, represented by Gina B. Krol, ESQ, Cohen & Krol. ColFin Midwest Funding, LLC, Defendant, represented by Lauren Newman – lnewman@thompsoncoburn.com -- Thompson Coburn LLP. About Trinity 83 Development LLC Trinity 83, Development, LLC, was formed in 2005. It is a Limited Liability Company formed under the laws of the State of Illinois. Its members are, and always have been, Donald J. Santacaterina, Thomas Connelly and George Yukich. In 2006 Trinity 83 constructed a Class A, 12,500 square foot, masonry retail/office building at 19100 S. Crescent Dr, Mokena Illinois. The building was constructed as a "build to suit" for two tenants, namely Kids Can Do, Inc, and Hair and Beauty Salon Suites of Mokena, Inc. Both tenants have occupied the building since 2006/07 and continue to do so. At least some of the ownership of the tenants are related to some of the members of Trinity 83. Trinity 83 filed a Chapter 11 petition (Bankr. N.S. Ill. Case No. 16-24652) on Aug. 1, 2016. The petition was signed by Donald L. Santacarina, member. The Debtor is represented by Gina B. Krol, Esq., at Cohen & Krol. The case is assigned to Judge Deborah L. Thorne. The Debtor disclosed total assets at $2.41 million and total debts at $2.13 million at the time of the filing. No official committee of unsecured creditors has been appointed in the case. TROVERCO INC: Proposes Up To $750K of Financing ----------------------------------------------- Troverco, Inc., asks the U.S. Bankruptcy Court for the Eastern District of Missouri for authority to obtain access to a postpetition revolving credit facility from Joseph E. Trover, Jr. and Joely Landreth, and to use the proceeds thereof as well as its cash collateral. The equity of the Debtor is owned by non-debtor Troverco Holding Company. As of the Petition Date, and continuing through today, the Debtor has no secured debt. Notwithstanding the adjustments to its business model and cost reduction initiatives, the Debtor's financial turnaround continues. Through this chapter 11 case, the Debtor intends to restructure its obligations under a plan of reorganization that promotes the Debtor's business plan and complies with the applicable provisions of the Bankruptcy Code. The Debtor contends that each prospective DIP lender declined to consider a DIP financing proposal even at the 12% (or higher) interest rate. The Debtor's principals, however, remain committed to the success of the Troverco business. For this reason, the Debtor's principals propose to provide sufficient financing to support the Debtor in its ongoing operations and turnaround efforts. Among other provisions, the material terms of the proposed financing are: A. DIP Credit Facility: The DIP Credit Facility will be made available pursuant to an Order authorizing the Debtor to obtain senior secured postpetition financing of up to $1,500,000 in the form of a secured revolving loan, of which an amount to be determined, but no less than $250,000 and no more than $750,000, may be accessed before entry of a Final Order. B. DIP Lender: The proposed DIP Lender will be a limited liability company formed and owned, directly or indirectly, by Joseph E. Trover, Jr. and Joely Landreth. C. Use of Proceeds: Proceeds of the DIP Credit Facility will be used for funding of the expenses described in, and up to the amounts provided in, an approved budget, as agreed by the DIP Lender and the Debtor, subject to restrictions which may be set forth in a Final Order. D. Term: The DIP Credit Facility will expire on the earliest of: (i) Jan. 31, 2018, (ii) the entry of an order of the Court confirming a chapter 11 plan or reorganization, (iii) closing of the sale(s) or disposition(s) of substantially all of the Debtor's assets under Bankruptcy Code Section 363(b) and (f), (iv) entry of an order dismissing this chapter 11 case, or (v) entry of an order converting the case to a proceeding under chapter 7 of the Bankruptcy Code. E. Collateral: Repayment of the DIP Credit Facility will be secured by first priority perfected security interests and liens on all of the Debtor's present and future assets, provided, however, that such security interests and liens will not attach to any recoveries by the Debtor's bankruptcy estate for claims arising under chapter 5 of the Bankruptcy Code. In addition, such interests and liens shall be subject to: (i) a carve-out for professionals retained by the Estate (including professionals for the Debtor and the Official Unsecured Creditors' Committee) limited to an amount to be determined, but no less than $25,000; (ii) the perfected rights of any vendor arising under section 5(c) of the Perishable Agricultural Commodities Act; and (iii) all fees due to the Office of the U.S. Trustee. F. Adequate Protection: The DIP Lender will be granted superpriority claims, payable from, and having recourse to, all prepetition and postpetition property of the Debtor's estate and all proceeds thereof, including the proceeds of any Chapter 5 Actions, subject to the Carve-Out. The DIP Lender will also receive, monthly, interest-only payments accruing at the rate of 3% per annum on all outstanding balances under the DIP Credit Facility. G. Cash Collateral: In addition to the proceeds of the DIP Credit Facility, the Debtor will have use of all proceeds of the collateral to pay Permitted Expenses. H. Interest Rate: The DIP Credit Facility shall accrue interest at a rate of 3% per annum. In the event of default, interest for all outstanding balances owed on the DIP Credit Facility will accrue at a rate of 5% per annum. A full-text copy of the Debtor's Motion, dated Sept. 5, 2017, is available at https://is.gd/mB1XTW About Troverco Inc. Based in Saint Louis, Missouri, Troverco Inc. -- http://www.troverco.com/-- is in the food industry specializing in freshly prepared sandwiches and snacks for delivery to businesses. Troverco began as a franchise in 1959 under the name Lakeshire Sandwiches. Troverco filed for Chapter 11 bankruptcy protection (Bankr. E.D. Mo. Case No. 17-44474) on June 29, 2017, estimating its assets and liabilities at between $1 million and $10 million. The petition was signed by Joseph E. Trover, Jr., the CEO. Judge Charles E. Rendlen III presides over the case. Spencer Fane LLP serves as the Debtor's bankruptcy counsel. Cullen and Dykman LLP is co-counsel. Three Twenty-One Capital Partners, LLC, is the Debtor's financial advisor and investment banker. On July 18, 2017, the Office of the U.S. Trustee appointed an official committee of unsecured creditors. Goldstein & McClintock LLLP is bankruptcy counsel to the Committee. UNITED BANCSHARES: Auditor Refuses to Stand for Reelection ---------------------------------------------------------- United Bancshares, Inc. was notified by RSM US, LLP that it declined to stand for reelection as its independent registered public accounting firm effective Sept. 12, 2017. RSM had served as the Company's independent registered independent accounting firm since 2005. The Audit Committee of the Board of Directors is actively seeking to engage another firm to replace RSM. The report of RSM on the Company's consolidated financial statements as of Dec. 31, 2015, and 2014 and for the years then ended, did not contain an adverse opinion or disclaimer of opinion and was not qualified or modified as to uncertainty, audit scope, or accounting principles. During the Company's past two fiscal years and the period from Jan. 1, 2016, to Sept. 12, 2017, (a) there were no disagreements as described in Item 304 (a)(1)(iv) of Regulation S-K promulgated by the Securities Exchange Commission with RSM on any matter of accounting principles or practices, financial statement disclosure or auditing scope or procedure which, if not resolved to the satisfaction of RSM, would have caused RSM to make reference thereto in its reports on the consolidated financial statements for such years; and (b) there were no reportable events as described in Item 304(a)(1)(v) of Regulation S-K promulgated by the Securities and Exchange Commission, except that as identified and described in management's assessment of the Company's internal control over financial reporting as reported on its Form 10-K for the fiscal year ended Dec. 31, 2015, material weaknesses existed in the internal controls as of Dec. 31, 2015 in connection with credit administration matters and the timeliness of financial reporting related to the identification and support for asset quality matters that could have a material effect on the consolidated financial statements. About United Bancshares Located in Philadelphia, Pennsylvania, United Bancshares, Inc., is an African American controlled and managed bank holding company for United Bank of Philadelphia, a commercial bank chartered in 1992 by the Commonwealth of Pennsylvania, Department of Banking. United Bancshares incurred a net loss of $494,775 in 2015, a net loss of $343,067 in 2014, and a net loss of $668,898 in 2013. As of Dec. 31, 2015, United Bancshares had $58.98 million in total assets, $56.30 million in total liabilities and $2.67 million in total shareholders' equity. VELLANO CORP: Contact Person of Committee Member Changed -------------------------------------------------------- William K. Harrington, the U.S. Trustee for Region 2, on Sept. 14 has amended the list of creditors to serve on the official committee of unsecured creditors in the Chapter 11 case of The Vellano Corp. National Pipe & Plastics, Inc., has changed its contact person to David Culburtson, President/CEO instead of Shelley M. Suer, CFO. The committee members are: (1) McWane, Inc. Attn: Bernie Kenney, Credit Manager 2266 S. 6th Street Cashocton, OH 43812 Tel: (800) 800-6013 (740) 291-1014 E-mail: bernie.kenney@mcwaneductile.com (2) Lane Enterprises, Inc. Attn: Michael J. McCauley 3905 Hartzdale Drive, Suite 514 Camp Hill, PA 17011 Vice President-Corporate Strategy Tel: (717) 761-8175 Fax: (717) 761-5055 E-mail: mmccauley@lane-enterprises.com (3) National Pipe & Plastics, Inc. Attn: David Culburtson, President/CEO 3421 Old Vestal Road Vestal, NY 13850 Tel: (607) 729-9381 Fax: (607) 729-9380 E-mail: djc@nationalpipe.com Official creditors' committees have the right to employ legal and accounting professionals and financial advisors, at a debtor's expense. They may investigate the debtor's business and financial affairs. Importantly, official committees serve as fiduciaries to the general population of creditors they represent. About The Vellano The Vellano Corporation -- http://www.vellano.com/-- is a veteran-owned business in the water and waste industry. It provides water services, sewer services and industrial supplies. The Debtor has 14 branch locations in six states: New York, Massachusetts, New Hampshire, Rhode Island, Alabama and Georgia. It employs more than 100 people. The Vellano Corporation sought Chapter 11 protection (Bankr. N.D.N.Y. Case No. 17-11348) on July 21, 2017, disclosing total assets at $5.81 million and total liabilities at $15.65 million. The petition was signed by Paul Vellano, as authorized representative. The Debtor tapped Richard H. Weiskopf, Esq., at The De Lorenzo Law Firm as counsel. William K. Harrington, the United States Trustee for Region 2, on Sept. 7 appointed three creditors to serve on the official committee of unsecured creditors in the Chapter 11 case of The Vellano Corp. VIRGIN ISLANDS PORT: S&P Lowers $24MM Marine Bonds Rating to 'B+' ----------------------------------------------------------------- S&P Global Ratings lowered its underlying rating (SPUR) rating to 'B+' from 'BBB' on the Virgin Islands Port Authority's (VIPA) marine revenue bonds and placed the rating on CreditWatch with negative implications. "The rating action reflects our view of the port's weakened business prospects in the aftermath of two severe hurricanes that struck the U.S. Virgin Islands this month," said S&P Global Ratings credit analyst Todd Spence. S&P said, "We believe VIPA's finances are vulnerable given the port's reliance on revenue related to cruise ships. The hurricane adversely affected the local tourist-dependent economy; its impact on the cruise activity at the port is likely to have a negative impact on debt service coverage and liquidity. In addition, the port's storm-related capital requirements could lower liquidity. Although the port has financial resources to mitigate some of the impact, the severity and duration of the impact are unknown and some impacts will be outside of management control." S&P's rating action affects about $42 million of marine revenue bonds outstanding. The following factors have contributed to S&P's view of VIPA's increased vulnerability: -- A weakening, highly tourist-dependent territorial economy, with hurricane damage likely to lower visitors and cruise activity at the port; -- Funding pension liabilities, which will place a greater strain on the port, with the pension fund approximately 20% funded and projected to become insolvent by 2023; -- The Virgin Islands' vulnerability to hurricanes, which have adversely affected (and will continue to adversely affect) both cruise traffic and revenue; and -- Competition on the island of St. Thomas between the VIPA's Crown Bay project and West Indian Co. Ltd. (WICO) facilities for cruise ship passengers' related revenue. Partially offsetting the above weaknesses, in S&P's view, are: -- Control of all of the islands' commercial (cruise and cargo) ports (except for WICO, the port serving the former Hovensa refinery, and Renaissance, the former Alcoa refining facility); and -- Strong coverage of 2.04x in 2016 and 1.88x for 2017 (projected), although DSC is likely to decline based on lower cruise activity as a result of the hurricane. S&P will monitor the VIPA's recovery from the storm and its financial condition and will update the CreditWatch listing as developments warrant. VITAMIN WORLD: Taps JND Corporate as Administrative Agent --------------------------------------------------------- Vitamin World, Inc. and its affiliated debtors seek approval from the US Bankruptcy Court for the District of Delaware to employ JND Corporate Restructuring as their administrative agent. Services to be provided by JND are: (i) assist with, among other things, solicitation, balloting, tabulation, and calculation of votes, as well as prepare any appropriate reports, as required in furtherance of confirmation of any chapter 11 plan; (ii) generate an official ballot certification and testify, if necessary, in support of the ballot tabulation results for any chapter 11 plan; (iii) provide a confidential data room; (iv) assist with preparation of the Debtors' schedules of assets and liabilities and statement of financial affairs; (v) generate, provide, and assist with claims objections, exhibits, claims reconciliation and related matters; (vi) manage any distributions pursuant to any confirmed chapter 11 plan(s); and (vii) provide other claims processing, noticing, solicitation, balloting, rights offering, and administrative services described in the Services Agreement, but not included in the Section 156(c) Application, as may be requested by the Debtors from time to time. JND's Fee Structure: Standard Discounted Hourly Rates Hourly Rates ------------ ------------ Clerical $35.00 - $55.00 $26.25 - $41.25 Case Assistant $65.00 - $85.00 $48.75 - $63.75 IT Manager $75.00 - $95.00 $56.25 - $71.25 Case Consultant $85.00 - $135.00 $63.75 - $101.25 Sr. Case Consultant $145.00 - $165.00 $108.75 - $123.75 Case Director $175.00 - $195.00 $131.25 - $146.25 Travis K. Vandell, CEO of JND, attests that JND is a "disinterested person" within the meaning of section 101(14) of the Bankruptcy Code, as modified by section 1107(b) of the Bankruptcy Code, and holds no interest adverse to the Debtors or their estates, as required by section 327(a) of the Bankruptcy Code. The Firm can be reached through: Travis K. Vandell JND Corporate Restructuring 8269 E. 234 Ave, Suite 275 Denver, CO 80238 Tel: 1-800-207-7160 Email: travis.vandell@jndla.com About Vitamin World Vitamin World Inc., VWRE Holdings, Inc. ("RE Holdings") and other related entities sought Chapter 11 protection (Bankr. D. Del. Lead Case No. 17-11933) on Sept. 11, 2017. Headquartered in Holbrook, New York, Vitamin World is a specialty retailer in the vitamins, minerals, herbs and supplements market. The Company offers customers products across all major VMHS and sports nutrition categories, including, supplements, active nutrition, multiples, letter vitamins, health and beauty, herbs, minerals, food and specialty items. When it filed for bankruptcy, Vitamin World was operating out of four distribution centers located in Holbrook, New York; Sparks, Nevada; Riverside, California; and Groveport, Ohio; and 334 retail stores that are mostly located in malls and outlet centers across the United States and its territories. Products are also sold online at http://www.vitaminworld.com/ The Company has 1,478 active employees. Katten Muchin Rosenman LLP is the Debtors' bankruptcy counsel. Saul Ewing Arnstein & Lehr LLP is the co-counsel. Retail Consulting Services, Inc., is the Debtors' real estate advisors. RAS Management Advisors, LLC, is the financial advisor. JND Corporate Restructuring is the claims and noticing agent. Vitamin World estimated assets of $50 million to $100 million and debt of $10 million to $50 million. VITAMIN WORLD: U.S. Trustee Forms 5-Member Committee ---------------------------------------------------- Andrew R. Vara, U.S. Trustee for Region 3, on Sept. 19 appointed five creditors to serve on the official committee of unsecured creditors in the Chapter 11 case of Vitamin World, Inc. The committee members are: (1) Visionet Systems, Inc. Attn: Yasir Imtiaz Cedarbrook Corporate Center 4 Cedarbrook Drive, Building B Cranbury, NJ 08512 Tel: (609) 452-0700 Ext. 1130 Fax: (609) 655-5232 (2) Irwin Naturals Attn: Mark Green 5310 Beethoven Street Los Angeles, CA 90066 Tel: (310) 574-6922 Fax: (310) 578-5318 (3) Quest Nutrition Attn: Michael Castle 2221 Park Place El Segundo, CA 90245 Tel: (562) 272-0180, Ext. 821 (4) Simon Property Group Attn: Ronald Tucker 225 West Washington Street Indianapolis, IN 46204 Tel: (317) 263-2346 Fax: (317) 263-7901 (5) GGP Limited Partnership Attn: Julie Minnick Bowden 110 North Wacker Drive Chicago, IL 60606 Tel: (312) 960-2707 Fax: (312) 442-6374 Official creditors' committees have the right to employ legal and accounting professionals and financial advisors, at a debtor's expense. They may investigate the debtor's business and financial affairs. Importantly, official committees serve as fiduciaries to the general population of creditors they represent. About Vitamin World Headquartered in Holbrook, New York, Vitamin World is a specialty retailer in the vitamins, minerals, herbs and supplements market. The Company offers customers products across all major VMHS and sports nutrition categories, including, supplements, active nutrition, multiples, letter vitamins, health and beauty, herbs, minerals, food and specialty items. Vitamin World is currently operating out of four distribution centers located in Holbrook, New York; Sparks, Nevada; Riverside, California; and Groveport, Ohio. It is currently operating approximately 334 retail stores that are mostly located in malls and outlet centers across the United States and its territories. Products are also sold online at http://www.vitaminworld.com/ The Company has 1,478 active employees. Vitamin World Inc., VWRE Holdings, Inc. ("RE Holdings") and other related entities sought Chapter 11 protection (Bankr. D. Del. Lead Case No. 17-11933) on Sept. 11, 2017. Katten Muchin Rosenman LLP is the Debtors' bankruptcy counsel. Saul Ewing Arnstein & Lehr LLP is the co-counsel. Retail Consulting Services, Inc., is the Debtors' real estate advisors. RAS Management Advisors, LLC, is the financial advisor. JND Corporate Restructuring is the claims and noticing agent and maintains the case Web site http://www.jndla.com/cases/vitaminworld Vitamin World estimated assets of $50 million to $100 million and debt of $10 million to $50 million. WALTER INVESTMENT: Barclays Upsizes Credit Facilities by $300M -------------------------------------------------------------- Walter Investment Management Corp. entered into a commitment letter with Barclays Bank PLC on Sept. 13, 2017, pursuant to which Barclays has agreed to increase the financing available to the Company under the following facilities: (1) the Amended and Restated Master Repurchase Agreement, dated as of April 23, 2015, among Barclays, as purchaser and agent, and Ditech Financial LLC, as seller; and (2) the Amended and Restated Master Repurchase Agreement, dated as of May 22, 2017, among Reverse Mortgage Solutions, Inc., as a seller, RMS REO BRC, LLC, as a seller, and Barclays, as purchaser and agent. Barclays has committed to provide the Company with an upsize of the Facilities with a maximum increase amount of $300,000,000 on the terms and subject to the conditions set forth in the Commitment Letter, with a closing date any time between the date of the Commitment Letter and Jan. 25, 2018. The Company may effectuate the Upsize as an increase of up to $150,000,000 (increasing the committed portion of the facility from $100,000,000 to $250,000,000) to the Ditech Facility and up to $150,000,000 (increasing the committed portion of the facility from $300,000,000 to $450,000,000) to the RMS Facility, up to a total (across both Facilities) of $300,000,000. In conjunction with any amendment to effectuate the Upsize, the termination date of each Facility being amended will be extended to Aug. 25, 2018, provided that, after May 21, 2018, the Maximum Aggregate Purchase Price (as that term is defined in the RMS Facility or the Ditech Facility, as applicable) will equal the amount of the Upsize with respect to the related Facility. The Company has experienced reductions in availability under its warehouse and advance facilities, through reductions in the Company's advance rates, changes to the terms of those facilities and otherwise, which has negatively impacted the Company's available liquidity and capital resources. The Upsize is expected to better position the Company to ensure it has sufficient liquidity in the near-term, though no assurance can be given that the Company will be successful in maintaining adequate financing capacity with its current or prospective lenders. About Walter Investment Walter Investment Management Corp. -- http://www.walterinvestment.com/-- is an independent servicer and originator of mortgage loans and servicer of reverse mortgage loans. Based in Fort Washington, Pennsylvania, the Company has approximately 4,500 employees and services a diverse loan portfolio. "The Company is facing certain challenges and uncertainties that could have significant adverse effects on its business, liquidity and financing activities," as disclosed in the Company's Form 10-Q report for the period ended June 30, 2017. "The Company may be adversely impacted by the following factors, among others: failure to maintain sufficient liquidity to operate its servicing and lending businesses due to the inability to renew, replace or extend its advance financing or warehouse facilities on favorable terms, or at all; failure to comply with covenants contained in its debt agreements or obtain any necessary waivers or amendments; failure to resolve its obligation with respect to the remaining mandatory clean-up calls; and failure to successfully restructure its corporate debt." Walter Investment reported a net loss of $833.9 million for the year ended Dec. 31, 2016, a net loss of $263.2 million for the year ended Dec. 31, 2015, and a net loss of $110.3 million for the year ended Dec. 31, 2014. As of June 30, 2017, Walter Investment had $15.59 billion in total assets, $15.70 billion in total liabilities and a total stockholders' deficit of $112.98 million. Ernst & Young LLP, in Tampa, Florida, issued a "going concern" opinion on the consolidated financial statements for the year ended Dec. 31, 2016, noting that on July 31, 2017 the Company entered into a Restructuring Support Agreement that provides for a prepackaged plan of restructuring in the event the Company is unsuccessful in otherwise restructuring its corporate debt. The prepackaged plan would provide court relief under the provisions of Chapter 11 of the Bankruptcy Code. These conditions, the auditors said, raise substantial doubt about the Company's ability to continue as a going concern. * * * In July 2017, S&P Global Ratings lowered its long-term issuer credit rating on Walter Investment Management Corp. to 'CCC-' from 'CCC'. The outlook is negative. In August 2017, Moody's Investors Service downgraded Walter Investment's corporate family rating to 'Caa3' from 'Caa2'. The rating action follows the company's announcement that it has entered into a restructuring support agreement with more than 50% of senior term loan lenders. WARWICK PROPERTIES: Case Summary & 6 Unsecured Creditors -------------------------------------------------------- Debtor: Warwick Properties, LLC 30 Gladewater Dr. Henderson, NV 89052 Business Description: Warwick Properties owns a real property located at 2115 Willow Road, Arroyo Grande, California, valued by the Company at $1.30 million. Chapter 11 Petition Date: September 20, 2017 Case No.: 17-15065 Court: United States Bankruptcy Court District of Nevada (Las Vegas) Judge: Hon. Mike K. Nakagawa Debtor's Counsel: David J. Winterton, Esq. DAVID WINTERTON & ASSOCIATES, LTD 1140 N Town Center Dr, Ste 120 Las Vegas, NV 89144 Tel: (702) 363-0317 Fax: (702) 363-1630 E-mail: david@davidwinterton.com autumn@davidwinterton.com Total Assets: $1.30 million Total Liabilities: $901,752 The petition was signed by Seth McCormick, managing member. A full-text copy of the Debtor's petition and list of six unsecured creditors is available for free at http://bankrupt.com/misc/nvb17-15056.pdf WASHINGTON PRIME: Fitch Affirms 'BB' Preferred Stock Rating ----------------------------------------------------------- Fitch Ratings has affirmed the ratings of Washington Prime Group, Inc. (NYSE: WPG) and its operating partnership, Washington Prime Group Limited Partnership at 'BBB-'. The Rating Outlook has been revised to Negative from Stable. KEY RATING DRIVERS The Negative Outlook reflects Fitch's view that WPG has weaker access to capital (secured and unsecured debt and equity) than most other investment grade REITs. However, Fitch views positively the company's more recent access to the unsecured bond market to extend debt maturities. Market sentiment across most capital providers for 'B' malls generally has eroded given the challenges to ascertaining the long-term productivity and financeability of this asset class. The company has adequate unencumbered asset coverage of unsecured debt when applying a stressed capitalization rate reflective of less productive retail assets, although the financeability of the company's community center portfolio is less certain. In addition, property-level performance has been uneven, with relatively flat occupancies and SSNOI growth, due primarily to a more challenging leasing environment. Over the short term Fitch believes that portfolio operating metrics will be stable to down slightly, but long-term 'B' malls fundamentals will likely decline. These factors are balanced by Fitch's expectation of investment-grade leverage and fixed-charge coverage (FCC) metrics. Further, while 'B' malls are less financeable in the mortgage market than most traditional real estate assets, they are considerably more financeable than niche asset classes such as casinos, data centers and hospitals. PROPERTY-LEVEL FUNDAMENTALS UNEVEN The company's operating performance has been negatively affected by weakening retailer trends, in particular tenant bankruptcies and closures. For the 12 months ended June 30, 2017, the company's stabilized mall same-center tenant sales per square foot was $368, down from $376 a year earlier, total portfolio occupancy declined approximately 70bps to 92.3% and same-store NOI declined 1.3% for the six months ended June 30, 2017. Fitch expects some stabilization in operating metrics as the company backfills vacant space; however, Fitch expects only modest same-store NOI growth during the projection period. EVOLVING ACCESS TO CAPITAL Fitch views WPG's access to most forms of debt and equity capital to be at the lower end of the investment-grade REIT spectrum and it has weakened since the time Fitch initiated ratings. Mortgage availability for 'B' malls is less plentiful and more discriminating than it was in prior years and has weakened over the last year. Similarly, Fitch views WPG's access to non-bank unsecured debt capital as weak compared to investment-grade peers when measured by bond issuance spreads, attributable to its asset class, market sentiment around less-productive malls and being a less-seasoned issuer. In particular, the company's August 2017 bond offering priced at a spread indicative of a below-investment-grade issuer. WPG's ability and willingness to issue unsecured debt in August 2017 was a credit positive on the margin. However, the widening in spreads for WPG's issuances juxtaposed against REIT spreads tightening may reflect deteriorating capital markets access. WPG's common equity is trading at a 38% discount to consensus net asset value which is one of the largest discounts in Fitch's rated universe (the REIT index is at a 1% discount). Fitch attributes the discount to the wide bid-ask spread for 'B' malls generally as the market struggles to ascertain the long-term viability and value of less productive malls. By extension, thinner investor demand for B-malls limits the extent to which WPG can raise equity through asset sales, and thus the company has resorted to contributing assets to joint ventures as a way to extract equity from these assets. Fitch believes that some of the company's stronger assets were contributed to these ventures, resulting in adverse selection towards unsecured bondholders. INVESTMENT-GRADE CREDIT METRICS Fitch expects that WPG's leverage will migrate towards the mid-6.0x range driven by (re)development NOI coming on line and minimal SSNOI growth over the projection period. WPG's leverage was 6.2x for the quarter ended June 30, 2017 and 5.7x for the TTM ended June 30, 2017. Leverage has declined over the past year due primarily to the company contributing assets to a joint venture and repaying debt with the proceeds. When treating 50% of WPG's preferred stock as debt, leverage would be approximately 0.2x higher. Fitch forecasts FCC will sustain in the high-2.0x range through 2019. Over the past three years FCC has been consistent at 3.1x on a TTM and calendar year basis for both 2016 and 2015. FCC fell to 2.8x for the quarter ended June 30, 2017 as lower rental revenues from dispositions failed to be offset by correspondingly lower interest expense. Fitch attributes some of the deterioration in the quarter to seasonality in revenues, but FCC will likely decline due to the higher cost of newly issued debt versus the retired term loans. ADEQUATE UNENCUMBERED ASSET COVERAGE OF NET UNSECURED DEBT Unencumbered asset coverage of June 30, 2017 over net unsecured debt was 2.1x when applying a stressed 9.0% capitalization rate to unencumbered NOI. This ratio is appropriate for the current rating and is driven in part by over 80% of the company's unencumbered NOI being derived from Tier 1 and community center properties, although the depth of secured financing for these assets as a form of contingent liquidity is less certain. NEGATIVE RATING OUTLOOK The Outlook revision to Negative principally reflects Fitch's expectation that the company's access to several forms of capital (common equity, unsecured and secured debt) will remain challenged, below that of investment-grade peers and increasingly more comparable to that of below-investment-grade REITs. Further, Fitch expects property-level fundamentals will remain under pressure due to a difficult retail environment, placing pressure on the company's ability to grow cash flow. Fitch believes it is unlikely there will be positive revision in investor sentiment and therefore property liquidity and financeability will be challenged. Regardless of investor perception, REITs' need for consistent access to capital heightens the implications of investor sentiment on such access. Moreover, while liquidity is adequate through the rating horizon, Fitch believes negative retail headlines will continue and thus 'B'-mall sentiment is unlikely to improve. DERIVATION SUMMARY Relative to the broader mall REIT sector, WPG's levels of occupancy, SSNOI growth, leasing spreads and tenant quality are weaker than Simon Property Group (IDR of A) and similar to 'B'-mall peer CBL & Associates, Inc. (IDR of BBB-). In addition, the company has weaker access to capital, given its ~38% equity trading discount to NAV and wide spreads at which its bonds trade relative to the broader peer set. Further, secured lender sentiment for the 'B'-mall asset class has declined to a level that Fitch believes is below that of many other retail commercial real estate asset classes. WPG has lower leverage than CBL, although Fitch expects leverage for both to center in the low-to-mid 6.0x's range during the projection period. KEY ASSUMPTIONS Fitch's key assumptions within its ratings case for the issuer include: - Annual SSNOI growth of approximately 1.0% for 2017-2019; - Annual development/redevelopment spend of $125 million for 2017-2019. The weighted average initial yield on cost for projects coming online is approximately 6%, ramping to approximately 8%; - Total non-core asset sales of approximately $300 million, none beyond 2017; - Annual recurring capital expenditures of $70 million. RATING SENSITIVITIES Future Developments That May, Individually or Collectively, Lead to Fitch Revising the Outlook to Stable at a 'BBB-' IDR: - Improved capital markets sentiment regarding 'B'-malls, specifically enhanced insurance company lending to the sector, bond issuance pricing closer to investment-grade peers, or a lower NAV discount for the company's common stock which may result in the company raising equity; - Fitch's expectation of leverage sustaining below 6.0x - Fitch's expectation of fixed charge coverage sustaining above 2.5x Future Developments That May, Individually or Collectively, Lead to Negative Rating Action - Should Fitch's opinion of WPG's access to debt and equity capital fail to improve from current levels; - Sustained deterioration in operating fundamentals or asset quality (e.g. sustained negative SSNOI results or negative leasing spreads); - Fitch's expectation of leverage sustaining above 7.0x; - Fitch's expectation of fixed charge coverage sustaining below 1.8x; - Failure to maintain unencumbered asset coverage of unsecured debt (based on a stressed 9% cap rate) at around 2.0x. LIQUIDITY Liquidity is not a concern given the lack of unsecured debt maturities over the next few years, although access to attractively priced debt and equity capital is a key rating consideration for REITs given their distribution requirements. The company ended the 2Q17 quarter with $76.8 million of cash and equivalents and has a $900 million revolver with no outstanding borrowings and $0.3 million of letters of credit outstanding. The revolver matures in 2018 with two six-month extension options through 2019. FULL LIST OF RATING ACTIONS Fitch has affirmed the following ratings: Washington Prime Group, Inc. -- Issuer Default Rating (IDR) at 'BBB-'; -- Preferred stock at 'BB'. Washington Prime Group Limited Partnership -- IDR at 'BBB-'; -- Senior unsecured revolving credit facility at 'BBB-'; -- Senior unsecured term loans at 'BBB-'; -- Senior unsecured notes at 'BBB-'. The Rating Outlook is Negative. WEBMD HEALTH: Egan-Jones Cuts Sr. Unsec. Debt Ratings to BB- ------------------------------------------------------------ Egan-Jones Ratings Company, on July 24, 2017, lowered the senior unsecured ratings on debt issue by WebMD Health Corp. to BB- from BB. WebMD is an American corporation known primarily as an online publisher of news and information pertaining to human health and well-being. WEST CORP: Fitch Assigns First-Time 'B+' IDR, Outlook Stable ------------------------------------------------------------ Fitch Ratings has assigned a first-time Long Term Issuer Default Rating (IDR) of 'B+' to West Corporation. Fitch has also assigned a first-time 'BB+/RR1' to the company's proposed senior secured credit facility and a 'B-/RR6' rating to its proposed senior unsecured notes. Proceeds from the issuance, together with anticipated equity contribution from Apollo will be used to fund Apollo's pending acquisition of West Corp and to refinance existing indebtedness. West Corp.'s senior secured credit facility will include a $350 million revolving facility maturing in 2022 and a $2.7 billion, seven-year term loan. The credit facility will be guaranteed by West Corp.'s parent Olympus Holdings II, LLC and certain domestic, wholly owned subsidiaries of West Corp. The facility will be secured by all equity interests of West Corp held by its parent and all assets of West Corp and its subsidiary guarantors. KEY RATING DRIVERS Scale and Diversification: West's credit rating reflects the company's scale and leading market positions across a diversified portfolio of technology solutions. West is world's largest conferencing and collaborations service provider and holds leading market positions in 9-1-1 infrastructure and proactive mobility and notification services. The company derives roughly 40% of revenue from segments other than unified communication services. Robust FCF Generation: FCFs are supported by West's mature and high-margin conferencing and collaboration business and overall low capex and working capital requirements. Fitch believes FCFs will remain strong due to the expected cessation of dividends going forward and lower capital intensity more than offsetting the negative impact from increase in interest expense. Fitch expects FCF margins in the range of 10%-13% over the rating horizon. Post-LBO Leverage: Pro forma for refinancing and $75 million of synergies, Fitch expects leverage post the Apollo transaction at 5.4x as of June 30, 2017 on an LTM basis. West will have elevated leverage at over 6.0x in 2017 due to the timing of realization of synergies (expected in 2018 and 2019). Fitch expects leverage to decline further in the following years as additional synergies are realized and as West reduces debt. Given the company's stated capital allocation policy (discussed below), Fitch anticipates that leverage will approximate 5.5x as of year-end 2018 and 5.0x by the end of 2019. Evolving Revenue and Margin Mix: West's changing revenue mix from the mature legacy audio conferencing business towards high growth segments will also impact overall operating margins given the Interactive and Safety Services segments compared to UCS segment had lower operating margins in 2016, and Interactive had lower operating margins for first six months of 2017.Fitch believes the company's ongoing cost reduction programs and synergies identified by Apollo coupled with higher gross margin in both Interactive and Safety Services segments will help arrest the decline in margins and lead to margin expansion as the business mix shifts. Favourable Capital Allocation Policy: Fitch views West's shift in capital allocation strategy as credit positive. The company plans to cease paying dividends going forward. Fitch anticipates that West's primary use of cash will be for deleveraging and strategic growth investments. The company may consider M&A opportunistically. Potential Synergies: Cost synergies are expected to focus on delayering and consolidating platforms and functional areas across West and are estimated to total $75 million. In addition, unifying brands acquired over the years from acquisitions under 'One West' initiative presents additional cross selling opportunities. From Fitch's perspective, execution risks related to achieving the expected cost synergies are modest. Fitch believes the synergies will be realized during the 2018 to 2019 timeframe. DERIVATION SUMMARY West Corp's business profile entails an amalgamation of a diverse portfolio of technology solutions and hence is not directly comparable to its peers that may provide similar but a different mix of technology services. In its Unified Communication Services segment that represents about 60% of total revenue, West Corp ('B+'/Stable) competes with technology and telecom industry giants such as Microsoft Corporation (AA+/Stable) and AT&T (A-/Rating Watch Negative), and Citrix Systems that are larger and better capitalized. In this category, it also competes with several mid and small sized companies such as Mitel Networks that lack the scale, diversification and/or geographic reach that West offers. In the Interactive Services business category, West is comparable to Nuance Communications Inc., which is similar in scale and margin profile. Nuance also derives the bulk of its revenue from the healthcare industry, which West sees as having high growth potential. Cotiviti Corporation is another healthcare focussed technology service provider that competes with West in Specialized Agent Services category. However, West's diversified revenue base and elevated leverage as compared to both these companies is more commensurate with a 'B+' rating category. West's ratings reflect the company's leading market position, strong FCF generation, scaling high growth segments, favourable capital allocation policy and increased leverage from the Apollo transaction. No country-ceiling, parent/subsidiary or operating environment aspects impacts the rating. KEY ASSUMPTIONS Fitch's key assumptions within its ratings case for the issuer include: -- High growth segments to offset the decline in audio conferencing segment; overall revenue to grow in low single digits over the forecast. -- Cost synergies to improve operating margin profile. Synergies of $75 million (less than 50% of total synergies) built into the model. -- Capex intensity assumed to decline gradually from historical levels due to identified capex synergies. -- No dividends assumed to reflect management's shift in capital allocation policy. Low levels of M&A activity assumed to reflect opportunistic M&A activity. -- Fitch expects leverage to decline to mid-5x range by the end of 2018 in anticipation of management utilizing a majority of FCFs to reduce debt over and above the mandatory payments on credit facility. RATING SENSITIVITIES Future Developments That May, Individually or Collectively, Lead to Positive Rating Action -- Improvement in operating profile including positive revenue growth exceeding Fitch's expectations, expansion of margins due to restructuring efforts and/or realization of synergies and expansion of customer base. -- Strong FCF generation with FCF margins sustained in double digits. -- Leverage sustained below 4.0x. Future Developments That May, Individually or Collectively, Lead to Negative Rating Action -- Inability to sustain organic revenue growth due to UCS segment declines offsetting revenue growth from other segments. -- Deterioration of operating profile due to competition, an inability to achieve desired efficiencies impacting operating margins, or weaker than expected FCFs. -- Leverage sustained above 6.0x. LIQUIDITY Fitch considers West's liquidity as adequate, supported by the company's sufficient cash balances, strong FCF generation and availability under the revolving facility. As of June 30, 2017, West reported cash and cash equivalents of $191.84 million, of which $108.9 million was held off-shore and is considered as not readily available per Fitch's rating criteria. West's proposed refinancing includes a revolving facility of $350 million, which is expected to remain undrawn at the closing of Apollo transaction. In addition, the company generates strong free cash flows that are supported by low capex and working capital requirements, and dividend cessation going forward. West's proposed debt structure includes a $350 million revolving facility with expected maturity in 2022, $2,700 million in term loans with a tenor of seven years and senior unsecured notes with a tenor of eight years. The new first lien term loan amount is expected to be decreased on a dollar for dollar basis with respect to the amount of West's 4.750% senior secured notes that remain outstanding on the closing date. The new senior unsecured notes amount is expected to be decreased on a dollar for dollar basis with respect to the amount of West's 5.375% senior unsecured notes that remain outstanding on the closing date. FULL LIST OF RATING ACTIONS Fitch has assigned the following ratings: West Corporation -- Issuer Default Rating 'B+'; -- Senior secured revolving facility maturing in 2022 'BB+'/RR1'; -- Senior secured term loans maturing in 2024 'BB+'/RR1; -- Senior unsecured notes maturing in 2025 'B-'/RR6. [*] Fitch: Retail Inst'l Default Rate Could Top 10% with Toys R Us ------------------------------------------------------------------ Toys 'R' Us' filing on September 18 pushes the retail institutional leveraged loan default rate over 7% from last month's 5.3% mark and that figure could surpass 10% by year end, according to Fitch Ratings. With $5 billion of defaults, retail accounts for 30% of the year-to-date loan volume. Sears is another large retailer that continues to be on Fitch Loans of Concerns list. Fitch projects Sears needs $1.5 billion - $1.75 billion in annual liquidity in 2017 and 2018, based on negative EBITDA of $600 million to $800 million. In addition, it has $1.4 billion of various tranches of secured debt due in 2018. Sears has raised approximately $1.4 billion fiscal year to date from asset sales, including Craftsman, and a line of credit facility. However, restructuring risk remains high given reduced sources of liquidity via asset sales (150-160 unencumbered stores) and inventory liquidation proceeds from closed stores. The company's 10K filed in March 2017 contained the statement stating "substantial doubt exists related to the Company's ability to continue as a going concern." Other potential retail default candidates by the end of the year include Nine West Holdings Corp., TOMS Shoes LLC, Everest Holdings LLC, Charlotte Russe Inc., and Charming Charlie LLC - all names on Fitch's Loans of Concern list. Should Sears file by year-end, the retail loan default rate could be as high as 12%. Toys' filing represents the sixth institutional loan retail default since April and is the second largest in terms of amount outstanding (slightly less than J. Crew Group Inc.'s July distressed debt exchange). Of Toys' $5.27 billion in total long-term debt that was outstanding at petition (including $1.025 billion borrowed on its $1.85 billion domestic ABL which will be replaced by a DIP facility), $2.85 billion of debt will be impacted by the bankruptcy. Toys' loans are currently held in 37 CLOs in the 333 Fitch-rated broadly syndicated loan CLO universe. The loans comprise less than 0.1% of the aggregate collateral in Fitch-rated CLOs and averages 0.4% of portfolio exposure. Toys' filing sends the overall loan default rate to 1.8% from 1.7%. Fitch anticipates the default rate will end 2017 at 2.5%. The filing notes the importance of the Toys' supply chain for the success of the business. The company stated "a news story published on September 6, 2017, reporting that the Debtors were considering a chapter 11 filing, started a dangerous game of dominos: within a week of its publication, nearly 40 percent of the Company's domestic and international product vendors refused to ship product without cash on delivery, cash in advance, or, in some cases, payment of all outstanding obligations." Mattel and Hasbro ratings are not impacted by Toys' credit claims. The Toys' filing lists Mattel, at $135.6 million, and Hasbro, at $59.1 million, as the two largest trade creditors. Toys' Chairman, David Brandon, stated it was critical for the company to reopen its supply chain immediately and a $3.1 billion debtor-in-possession financing would permit Toys to pay vendors in the ordinary course of business, post-petition. The bankruptcy filing documents cite the following payments to vendors for pre-petition claims: $325 million (including $115 million interim) for "Critical Vendors" in North America and $56 million (including $26 million interim) for foreign vendor claims. Mattel and Hasbro should be considered Critical Vendors. In addition, vendors have reclamation rights (can reclaim inventory if not paid) for product shipped within 20 days of the filing. Vendors typically grant Toys 60-day trade terms, so some of their claims would fall under this umbrella. [^] BOOK REVIEW: The Sorcerer's Apprentice - Medical Miracles ------------------------------------------------------------- Author: Sallie Tisdale Publisher: BeardBooks Softcover: 270 pages List Price: $34.95 Review by Henry Berry Order your own personal copy at http://is.gd/9SAfJR An earlier edition of "The Sorcerer's Apprentice" won an American Health Book Award in 1986. The book has been recognized as an outstanding book on popular science. Tisdale brings to her subject of the wide nd engrossing field of health and illness the perspective, as well as the special sympathies and sensitivities, of a registered nurse. She is an exceptionally skilled writer. Again and again, her descriptions of ill individuals and images of illnesses such as cancer and meningitis make a lasting impression. Tisdale accomplishes the tricky business of bringing the reader to an understanding of what persons experience when they are ill; and in doing this, to understand more about the nature of illness as well. Her style and aim as a writer are like that of a medical or science journalist for leading major newspaper, say the "New York Times" or "Los Angeles Times." To this informative, readable style is added the probing interest and concern of the philosopher trying to shed some light on one of the central and most unsettling aspects of human existence. In this insightful, illuminating, probing exploration of the mystery of illness, Tisdale also outlines the limits of the effectiveness of treatments and cures, even with modern medicine's store of technology and drugs. These are often called "miracles" of modern medicine. But from this author's perspective, with the most serious, life-threatening, illnesses, doctors and other health- care professionals are like sorcerer's trying to work magic on them. They hope to bring improvement, but can never be sure what they do will bring it about. Tisdale's intent is not to debunk modern medicine, belittle its resources and ways, or suggest that the medical profession holds out false hopes. Her intent is do report on the mystery of serious illness as she has witnessed it and from this, imagined what it is like in her varied work as a registered nurse. She also writes from her own experiences in being chronically ill when she was younger and the pain and surgery going with this. She writes, "I want to get at the reasons for the strange state of amnesia we in the health professions find ourselves in. I want to find clues to my weird experiences, try to sense the nature of being sick." The amnesia of health professionals is their state of mind from the demands placed on them all the time by patients, employers, and society, as well as themselves, to cure illness, to save lives, to make sick people feel better. Doctors, surgeons, nurses, and other health-care professionals become primarily technicians applying the wonders of modern medicine. Because of the volume of patients, they do not get to spend much time with any one or a few of them. It's all they can do to apply the prescribed treatment, apply more of it if it doesn't work the first time, and try something else if this treatment doesn't seem to be effective. Added to this is keeping up with the new medical studies and treatments. But Tisdale stepped out of this problem- solving outlook, can-do, perfectionist mentality by opting to spend most of her time in nursing homes, where she would be among old persons she would see regularly, away from the high-charged atmosphere of a hospital with its "many medical students, technicians, administrators, and insurance review artists." To stay on her "medical toes," she balanced this with working occasional shifts in a nearby hospital. In her hospital work, she worked in a neonatal intensive care unit (NICU), intensive care unit (ICU), a burn center, and in a surgery room. From this combination of work with the infirm, ill, and the latest medical technology and procedures among highly-skilled professionals, Tisdale learned that "being sick is the strangest of states." This is not the lesson nearly all other health-care workers come away with. For them, sick persons are like something that has to be "fixed." They're focused on the practical, physical matter of treating a malady. Unlike this author, they're not focused consciously on the nature of pain and what the patient is experiencing. The pragmatic, results-oriented medical profession is focused on the effects of treatment. Tisdale brings into the picture of health care and seriously-ill patients all of what the medical profession in its amnesia, as she called it, overlooks. Simply in describing what she observes, Tisdale leads those in the medical profession as well as other interested readers to see what they normally overlook, what they normally do not see in the business and pressures of their work. She describes the beginning of a hip-replacement operation, the surgeon "takes the scalpel and cuts--the top of the hip to a third of the way down the thigh--and cuts again through the globular yellow fat, and deeper. The resident follows with a cautery, holding tiny spraying blood vessels and burning them shut with an electric current. One small, throbbing arteriole escapes, and his glasses and cheek are splattered." One learns more about what is actually going on in an operation from this and following passages than from seeing one of those glimpses of operations commonly shown on TV. The author explains the illness of meningitis, "The brain becomes swollen with blood and tissue fluid, its entire surface layered with pus...The pressure in the skull increases until the winding convolutions of the brain are flattened out...The spreading infection and pressure from the growing turbulent ocean sitting on top of the brain cause permanent weakness and paralysis, blindness, deafness...." This dramatic depiction of meningitis brings together medical facts, symptoms, and effects on the patient. Tisdale does this repeatedly to present illness and the persons whose lives revolve around it from patients and relatives to doctors and nurses in a light readers could never imagine, even those who are immersed in this world. Tisdale's main point is that the miracles of modern medicine do not unquestionably end the miseries of illness, or even unquestionably alleviate them. As much as they bring some relief to ill individuals and sometimes cure illness, in many cases they bring on other kinds of pains and sorrows. Tisdale reminds readers that the mystery of illness does, and always will, elude the miracle of medical technology, drugs, and practices. Part of the mystery of the paradoxes of treatment and the elusiveness of restored health for ill persons she focuses on is "simply the mystery of illness. Erosion, obviously, is natural. Our bodies are essentially entropic." This is what many persons, both among the public and medical professionals, tend to forget. "The Sorcerer's Apprentice" serves as a reminder that the faith and hope placed in modern medicine need to be balanced with an awareness of the mystery of illness which will always be a part of human life. ********* Monday's edition of the TCR delivers a list of indicative prices for bond issues that reportedly trade well below par. Prices are obtained by TCR editors from a variety of outside sources during the prior week we think are reliable. Those sources may not, however, be complete or accurate. The Monday Bond Pricing table is compiled on the Friday prior to publication. Prices reported are not intended to reflect actual trades. Prices for actual trades are probably different. Our objective is to share information, not make markets in publicly traded securities. Nothing in the TCR constitutes an offer or solicitation to buy or sell any security of any kind. It is likely that some entity affiliated with a TCR editor holds some position in the issuers public debt and equity securities about which we report. Each Tuesday edition of the TCR contains a list of companies with insolvent balance sheets whose shares trade higher than $3 per share in public markets. At first glance, this list may look like the definitive compilation of stocks that are ideal to sell short. Don't be fooled. Assets, for example, reported at historical cost net of depreciation may understate the true value of a firm's assets. A company may establish reserves on its balance sheet for liabilities that may never materialize. The prices at which equity securities trade in public market are determined by more than a balance sheet solvency test. On Thursdays, the TCR delivers a list of recently filed Chapter 11 cases involving less than $1,000,000 in assets and liabilities delivered to nation's bankruptcy courts. The list includes links to freely downloadable images of these small-dollar petitions in Acrobat PDF format. Each Friday's edition of the TCR includes a review about a book of interest to troubled company professionals. All titles are available at your local bookstore or through Amazon.com. Go to http://www.bankrupt.com/books/to order any title today. Monthly Operating Reports are summarized in every Saturday edition of the TCR. The Sunday TCR delivers securitization rating news from the week then-ending. TCR subscribers have free access to our on-line news archive. Point your Web browser to http://TCRresources.bankrupt.com/and use the e-mail address to which your TCR is delivered to login. ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter is a daily newsletter co-published by Bankruptcy Creditors Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA. Jhonas Dampog, Marites Claro, Joy Agravante, Rousel Elaine Tumanda, Valerie Udtuhan, Howard C. Tolentino, Carmel Paderog, Meriam Fernandez, Joel Anthony G. Lopez, Cecil R. Villacampa, Sheryl Joy P. Olano, Psyche A. Castillon, Ivy B. Magdadaro, Carlo Fernandez, Christopher G. Patalinghug, and Peter A. Chapman, Editors. Copyright 2017. All rights reserved. ISSN: 1520-9474. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR subscription rate is $975 for 6 months delivered via e-mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are $25 each. For subscription information, contact Peter A. Chapman at 215-945-7000 or Nina Novak at 202-362-8552. *** End of Transmission ***